Tuesday, October 16, 2018

Stocks Soaring into Final Hour on Earnings Optimism, Less European/Emerging Market/US High-Hield Debt Angst, Stable Long-Term Rates, Biotech/Tech Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Above Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 18.0 -15.5%
  • Euro/Yen Carry Return Index 135.11 +.38%
  • Emerging Markets Currency Volatility(VXY) 9.70 -3.77%
  • S&P 500 Implied Correlation 39.38 -7.4%
  • ISE Sentiment Index 91.0 +9.64%
  • Total Put/Call 1.02 +7.37%
  • NYSE Arms 1.35 +32.4%
Credit Investor Angst:
  • North American Investment Grade CDS Index 64.11 -2.39%
  • America Energy Sector High-Yield CDS Index 406.0 +.10%
  • European Financial Sector CDS Index 89.01 -3.84%
  • Italian/German 10Y Yld Spread 296.25 -8.0 basis points
  • Asia Pacific Sovereign Debt CDS Index 9.77 -.91%
  • Emerging Market CDS Index 197.70 -2.90%
  • iBoxx Offshore RMB China Corporate High Yield Index 150.07 -.22%
  • 2-Year Swap Spread 19.25 -.75 basis point
  • TED Spread 16.25 -1.0 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -45.75 +1.0 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 67.34 +.57%
  • 3-Month T-Bill Yield 2.29% +2.0 basis points
  • Yield Curve 29.25 -1.0 basis point
  • China Iron Ore Spot 69.89 USD/Metric Tonne +.04%
  • Citi US Economic Surprise Index -.5 +4.9 points
  • Citi Eurozone Economic Surprise Index -30.1 -7.5 points
  • Citi Emerging Markets Economic Surprise Index -2.6 -.6 point
  • 10-Year TIPS Spread 2.13 unch.
  • 75.9% chance of Fed rate hike at Dec. 19th meeting, 76.9% chance at Jan. 30th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +259 open in Japan 
  • China A50 Futures: Indicating +137 open in China
  • DAX Futures: Indicating -1 open in Germany
Portfolio: 
  • Higher: On gains in my industrial/retail/tech/biotech/medical sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my emerging market shorts
  • Market Exposure: Moved to 100% Net Long

No comments: