Monday, November 05, 2018

Stocks Modestly Higher into Final Hour on Mid-Term Election Optimism, Less Emeging Markets Debt Angst, Bargain-Hunting, Energy/Financial Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Around Even
  • Sector Performance: Mixed
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 19.7 +.9%
  • Euro/Yen Carry Return Index 134.40 +.26%
  • Emerging Markets Currency Volatility(VXY) 10.09 -1.08%
  • S&P 500 Implied Correlation 42.70 -.35%
  • ISE Sentiment Index 88.0 -22.1%
  • Total Put/Call 1.02 +9.7%
  • NYSE Arms .70 -31.4%
Credit Investor Angst:
  • North American Investment Grade CDS Index 65.54 -1.17%
  • America Energy Sector High-Yield CDS Index 541.0 +1.41%
  • European Financial Sector CDS Index 86.58 -.69%
  • Italian/German 10Y Yld Spread 289.75 +.5 basis point
  • Asia Pacific Sovereign Debt CDS Index 9.91 -4.53%
  • Emerging Market CDS Index 191.31 -1.06%
  • iBoxx Offshore RMB China Corporate High Yield Index 148.03 +.39%
  • 2-Year Swap Spread 19.5 -1.0 basis point
  • TED Spread 26.75 +2.0 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -39.5 -2.25 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 67.17 +.23%
  • 3-Month T-Bill Yield 2.31% -1.0 basis point
  • Yield Curve 29.25 -1.25 basis points
  • China Iron Ore Spot 72.38 USD/Metric Tonne +.14%
  • Citi US Economic Surprise Index 10.0 +3.9 points
  • Citi Eurozone Economic Surprise Index -56.1 +.6 point
  • Citi Emerging Markets Economic Surprise Index -10.0 -.9 point
  • 10-Year TIPS Spread 2.07 +2.0 basis points
  • 74.3% chance of Fed rate hike at Dec. 19th meeting, 75.7% chance at Jan. 30th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +167 open in Japan 
  • China A50 Futures: Indicating +11 open in China
  • DAX Futures: Indicating +11 open in Germany
Portfolio: 
  • Slightly Higher: On gains in my retail/industrial sector longs and index hedges
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my emerging market shorts
  • Market Exposure: Moved to 75% Net Long

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