Monday, October 28, 2019

Stocks Rising into Final Hour on Earnings Optimism, China Trade Deal Hopes, Technical Buying, Tech/Biotech Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 13.0 +3.0%
  • Euro/Yen Carry Return Index 125.60 +.5%
  • Emerging Markets Currency Volatility(VXY) 7.2 +.14%
  • S&P 500 Implied Correlation 30.0 -1.1%
  • ISE Sentiment Index 105.0 +29.0
  • Total Put/Call .76 -8.4%
  • NYSE Arms 1.05 +52.2%
Credit Investor Angst:
  • North American Investment Grade CDS Index 52.78 -1.79%
  • America Energy Sector High-Yield CDS Index 502.0 +1.12%
  • European Financial Sector CDS Index 57.52 -.46%
  • Italian/German 10Y Yld Spread 133.75 +2.25 basis points
  • Asia Ex-Japan Investment Grade CDS Index 67.20 -1.62%
  • Emerging Market CDS Index 191.27 +.09%
  • iBoxx Offshore RMB China Corporate High Yield Index 167.08 +.11%
  • 2-Year Swap Spread 3.0 +.25 basis point
  • TED Spread 26.75 -.75 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -22.75 -.25 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 66.41 +.28%
  • 3-Month T-Bill Yield 1.64% -2.0 basis points
  • Yield Curve .18 unch.
  • China Iron Ore Spot 81.50 USD/Metric Tonne -.29%
  • Citi US Economic Surprise Index 3.0 -1.9 points
  • Citi Eurozone Economic Surprise Index -52.50 +3.6 points
  • Citi Emerging Markets Economic Surprise Index -16.60 +2.9 basis points
  • 10-Year TIPS Spread 1.65 unch.
  • 94.0% chance of Fed rate cut at Dec. 11th meeting, 95.7% chance of cut at Jan. 29th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +118 open in Japan 
  • China A50 Futures: Indicating +60 open in China
  • DAX Futures: Indicating +10 open in Germany
Portfolio:
  • Higher: On gains in my tech/retail/industrial/biotech/medical sector longs
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

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