Friday, October 20, 2017

Stocks Surging into Final Hour on Tax Reform Hopes, Fed Chair Appointment Optimism, Earnings Outlooks, Financial/Tech Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Above Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 9.79 -2.59%
  • Euro/Yen Carry Return Index 139.38 +.23%
  • Emerging Markets Currency Volatility(VXY) 8.07 +.75%
  • S&P 500 Implied Correlation 14.70 -3.86%
  • ISE Sentiment Index 130.0 +120.34%
  • Total Put/Call .78 -21.21%
  • NYSE Arms 1.05 +15.90%
Credit Investor Angst:
  • North American Investment Grade CDS Index 52.36 -2.11%
  • America Energy Sector High-Yield CDS Index 384.0 -1.68%
  • European Financial Sector CDS Index 58.76 -3.28%
  • Western Europe Sovereign Debt CDS Index 4.67 -6.04%
  • Asia Pacific Sovereign Debt CDS Index 15.58 -1.45%
  • Emerging Market CDS Index 172.95 +.32%
  • iBoxx Offshore RMB China Corporate High Yield Index 144.62 +.02%
  • 2-Year Swap Spread 24.25 unch.
  • TED Spread 26.5 -1.0 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -41.0 -.5 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 73.51 -.44%
  • 3-Month T-Bill Yield 1.10% +1.0 basis point
  • Yield Curve 80.0 +3.0 basis points
  • China Import Iron Ore Spot $62.46/Metric Tonne +2.6%
  • Citi US Economic Surprise Index 1.5 -.3 point
  • Citi Eurozone Economic Surprise Index 54.10 +.2 basis point
  • Citi Emerging Markets Economic Surprise Index 17.20 -.4 basis point
  • 10-Year TIPS Spread 1.88 +4.0 basis points
  • 84.2% chance of Fed rate hike at Dec. 13 meeting, 84.8% chance at Jan. 31 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +142 open in Japan 
  • China A50 Futures: Indicating +10 open in China
  • DAX Futures: Indicating -4 open in Germany
Portfolio: 
  • Higher: On gains in my medical/tech/retail sector longs
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

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