Thursday, August 02, 2018

Stocks Rising into Final Hour on Earnings Outlooks, Bargain-Hunting, Short-Covering, Tech/Healthcare Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Above Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 12.4 -5.9%
  • Euro/Yen Carry Return Index 134.79 -.57%
  • Emerging Markets Currency Volatility(VXY) 10.32 +3.7%
  • S&P 500 Implied Correlation 29.95 -3.32%
  • ISE Sentiment Index 121.0 +14.2%
  • Total Put/Call 1.08 +6.9%
  • NYSE Arms 1.11 -2.28%
Credit Investor Angst:
  • North American Investment Grade CDS Index 58.83 +.78%
  • America Energy Sector High-Yield CDS Index 366.0 +1.20%
  • European Financial Sector CDS Index 77.42 +3.59%
  • Italian/German 10Y Yld Spread 245.25 +14.0 basis points
  • Asia Pacific Sovereign Debt CDS Index 10.97 -.99%
  • Emerging Market CDS Index 173.87 +.97%
  • iBoxx Offshore RMB China Corporate High Yield Index 150.14 +.09%
  • 2-Year Swap Spread 22.0 +.25 basis point
  • TED Spread 33.50 +1.5 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -6.50 -1.5 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 69.37 -.57%
  • 3-Month T-Bill Yield 2.0% -2.0 basis points
  • Yield Curve 32.25 unch.
  • China Iron Ore Spot 66.72 USD/Metric Tonne +.48%
  • Citi US Economic Surprise Index -2.40 +.4 point
  • Citi Eurozone Economic Surprise Index -25.60 +.6 point
  • Citi Emerging Markets Economic Surprise Index -11.60 -8.3 points
  • 10-Year TIPS Spread 2.13 -1.0 basis point
  • 90.3% chance of Fed rate hike at Nov. 8th meeting, 97.1% chance at Dec. 19th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +78 open in Japan 
  • China A50 Futures: Indicating +39 open in China
  • DAX Futures: Indicating +33 open in Germany
Portfolio: 
  • Higher: On gains in my tech/biotech/retail sector longs and emerging market shorts
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

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