Wednesday, August 22, 2018

Stocks Slightly Higher into Final Hour on Less Emerging Markets Debt/Currency Angst, Earnings Optimism, Oil Gain, EnergyBiotech Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Higher
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 12.18 -5.3%
  • Euro/Yen Carry Return Index 133.25 +.37%
  • Emerging Markets Currency Volatility(VXY) 12.04 -1.55%
  • S&P 500 Implied Correlation 29.37 +.07%
  • ISE Sentiment Index 99.0 unch.
  • Total Put/Call .96 +18.5%
  • NYSE Arms 1.02 -17.8%
Credit Investor Angst:
  • North American Investment Grade CDS Index 59.86 -.92%
  • America Energy Sector High-Yield CDS Index 402.0 -1.09%
  • European Financial Sector CDS Index 80.71 -1.71%
  • Italian/German 10Y Yld Spread 271.75 +6.0 basis points
  • Asia Pacific Sovereign Debt CDS Index 10.61 -2.08%
  • Emerging Market CDS Index 205.05 -.59%
  • iBoxx Offshore RMB China Corporate High Yield Index 150.98 -.02%
  • 2-Year Swap Spread 19.25 -.5 basis point
  • TED Spread 23.5 -2.5 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -10.0 -1.5 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 66.88 +.15%
  • 3-Month T-Bill Yield 2.07% +1.0 basis point
  • Yield Curve 23.0 -.75 basis point
  • China Iron Ore Spot 66.59 USD/Metric Tonne +.27%
  • Citi US Economic Surprise Index -17.30 -.8 point
  • Citi Eurozone Economic Surprise Index -8.70 +.3 point
  • Citi Emerging Markets Economic Surprise Index -9.80 -.2 point
  • 10-Year TIPS Spread 2.08 unch.
  • 92.3% chance of Fed rate hike at Nov. 8th meeting, 97.1% chance at Dec. 19th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +50 open in Japan 
  • China A50 Futures: Indicating +36 open in China
  • DAX Futures: Indicating -11 open in Germany
Portfolio: 
  • Higher: On gains in my tech/medical/biotech sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

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