Monday, August 27, 2018

Stocks Surging into Final Hour on Diminishing Trade War Fears, Economic Optimism, Technical Buying, Financial/Biotech Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Below Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 12.2 +1.92%
  • Euro/Yen Carry Return Index 134.97 +.36%
  • Emerging Markets Currency Volatility(VXY) 12.56 unch.
  • S&P 500 Implied Correlation 29.09 -.58%
  • ISE Sentiment Index 87.0 -25.64%
  • Total Put/Call .92 -8.91%
  • NYSE Arms .61 -42.7%
Credit Investor Angst:
  • North American Investment Grade CDS Index 58.86 -1.72%
  • America Energy Sector High-Yield CDS Index 395.0 -1.2%
  • European Financial Sector CDS Index 80.35 -.21%
  • Italian/German 10Y Yld Spread 278.0 -2.75 basis points
  • Asia Pacific Sovereign Debt CDS Index 10.55 -.47%
  • Emerging Market CDS Index 205.44 -1.86%
  • iBoxx Offshore RMB China Corporate High Yield Index 151.18 +.07%
  • 2-Year Swap Spread 18.25 +.25 basis point
  • TED Spread 21.75 -.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -9.75 +.5 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 66.90 -.04%
  • 3-Month T-Bill Yield 2.10% +1.0 basis point
  • Yield Curve 20.50 +.5 basis point
  • China Iron Ore Spot 65.78 USD/Metric Tonne +.17%
  • Citi US Economic Surprise Index -20.90 -1.7 points
  • Citi Eurozone Economic Surprise Index 5.20 +10.2 points
  • Citi Emerging Markets Economic Surprise Index -9.50 +.2 point
  • 10-Year TIPS Spread 2.11 +2.0 basis points
  • 97.0% chance of Fed rate hike at Nov. 8th meeting, 99.1% chance at Dec. 19th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +96 open in Japan 
  • China A50 Futures: Indicating +28 open in China
  • DAX Futures: Indicating +9 open in Germany
Portfolio: 
  • Higher: On gains in my tech/retail/medical/industrial/biotech sector longs
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

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