Wednesday, August 29, 2018

Stocks Rising into Final Hour on Diminishing Trade War Fears, Economic Optimism, Oil Gain, Biotech/Construction Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 12.27 -1.84%
  • Euro/Yen Carry Return Index 135.89 +.46%
  • Emerging Markets Currency Volatility(VXY) 12.34 +1.48%
  • S&P 500 Implied Correlation 29.40 -2.3%
  • ISE Sentiment Index 82.0 -26.8%
  • Total Put/Call .80 unch.
  • NYSE Arms 1.01 -26.3%
Credit Investor Angst:
  • North American Investment Grade CDS Index 58.66 +.08%
  • America Energy Sector High-Yield CDS Index 399.0 +.83%
  • European Financial Sector CDS Index 80.58 +.06%
  • Italian/German 10Y Yld Spread 272.0 -8.75 basis points
  • Asia Pacific Sovereign Debt CDS Index 10.31 +.24%
  • Emerging Market CDS Index 216.90 +3.86%
  • iBoxx Offshore RMB China Corporate High Yield Index 151.25 +.02%
  • 2-Year Swap Spread 17.5 unch.
  • TED Spread 19.75 -1.0 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -10.75 -.75 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 66.62 -.54%
  • 3-Month T-Bill Yield 2.12% +1.0 basis point
  • Yield Curve 20.75 -.75 basis point
  • China Iron Ore Spot 65.43 USD/Metric Tonne -.5%
  • Citi US Economic Surprise Index -17.90 +3.2 points
  • Citi Eurozone Economic Surprise Index 3.70 +.1 point
  • Citi Emerging Markets Economic Surprise Index -10.30 unch.
  • 10-Year TIPS Spread 2.12 unch.
  • 94.8% chance of Fed rate hike at Nov. 8th meeting, 98.5% chance at Dec. 19th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +112 open in Japan 
  • China A50 Futures: Indicating +16 open in China
  • DAX Futures: Indicating -1 open in Germany
Portfolio: 
  • Higher: On gains in my tech/medical/biotech sector longs
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

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