Wednesday, September 11, 2019

Stocks Surging into Final Hour on China Trade Deal Hopes, Diminished Global Growth Concerns, Short-Covering, 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) 14.9 -1.78%
  • Euro/Yen Carry Return Index 123.18 -.10%
  • Emerging Markets Currency Volatility(VXY) 8.25 -.24%
  • S&P 500 Implied Correlation 36.8 +2.51%
  • ISE Sentiment Index 109.0 +12.4%
  • Total Put/Call .73 -12.0%
  • NYSE Arms .95 +20.3%
Credit Investor Angst:
  • North American Investment Grade CDS Index 51.12 -1.76%
  • America Energy Sector High-Yield CDS Index 386.0 -4.22%
  • European Financial Sector CDS Index 57.72 -.66%
  • Italian/German 10Y Yld Spread 153.5 -3.25 basis points
  • Asia Ex-Japan Investment Grade CDS Index 57.60 -.63%
  • Emerging Market CDS Index 200.35 -.56%
  • iBoxx Offshore RMB China Corporate High Yield Index 165.29 -.03%
  • 2-Year Swap Spread -1.25 +.25 basis point
  • TED Spread 19.25 -.75 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -12.75 +2.5 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 65.69 -.11%
  • 3-Month T-Bill Yield 1.95% +1.0 basis point
  • Yield Curve .05 unch.
  • China Iron Ore Spot 91.10 USD/Metric Tonne +5.46%
  • Citi US Economic Surprise Index 7.0 unch.
  • Citi Eurozone Economic Surprise Index -36.80 +.4 point
  • Citi Emerging Markets Economic Surprise Index -11.1 +4.5 points
  • 10-Year TIPS Spread 1.60 +1.0 basis point
  • 100.0% chance of Fed rate cut at Oct. 30th meeting, 100.0% chance of cut at Dec. 11th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -112 open in Japan 
  • China A50 Futures: Indicating +63 open in China
  • DAX Futures: Indicating +16 open in Germany
Portfolio:
  • Higher: On gains in my retail/industrial/biotech/tech/medical sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

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