Wednesday, November 08, 2017

Stocks Reversing Higher into Final Hour on Tax Reform Hopes, Earnings Outlooks, Economic Optimism, Tech/Homebuilding Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Slightly Lower
  • Sector Performance: Most Sectors Rising
  • Volume: Heavy
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 9.6 -2.9%
  • Euro/Yen Carry Return Index 137.54 -.1%
  • Emerging Markets Currency Volatility(VXY) 8.14 -.12%
  • S&P 500 Implied Correlation 14.85 -5.8%
  • ISE Sentiment Index 71.0 -4.05%
  • Total Put/Call 1.0 -1.96%
  • NYSE Arms .89 -18.29%
Credit Investor Angst:
  • North American Investment Grade CDS Index 54.84 +1.68%
  • America Energy Sector High-Yield CDS Index 362.0 +.43%
  • European Financial Sector CDS Index 52.25 +1.86%
  • Western Europe Sovereign Debt CDS Index 3.99 +1.40%
  • Asia Pacific Sovereign Debt CDS Index 15.72 +1.42%
  • Emerging Market CDS Index 188.55 -.62%
  • iBoxx Offshore RMB China Corporate High Yield Index 145.18 +.03%
  • 2-Year Swap Spread 19.50 -1.0 basis point
  • TED Spread 18.25 -1.25 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -46.25 -2.25 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 72.44 +.23%
  • 3-Month T-Bill Yield 1.22% +2.0 basis points
  • Yield Curve 68.5 +.25 basis point
  • China Import Iron Ore Spot $62.26/Metric Tonne -.64%
  • Citi US Economic Surprise Index 41.30 +.8 point
  • Citi Eurozone Economic Surprise Index 60.40 -.4 basis point
  • Citi Emerging Markets Economic Surprise Index 15.90 -.5 point
  • 10-Year TIPS Spread 1.89 +1.0 basis point
  • 100.0% chance of Fed rate hike at Jan. 31 meeting, 100.0% chance at March 21 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +78 open in Japan 
  • China A50 Futures: Indicating -16 open in China
  • DAX Futures: Indicating +21 open in Germany
Portfolio: 
  • Higher: On gains in my tech/medical/retail sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

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