Thursday, November 07, 2019

Stocks Modestly Higher into Final Hour on China Trade Deal Hopes, Earnings Optimism, Oil Gain, Energy/Tech Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Above Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 12.7 +.4%
  • Euro/Yen Carry Return Index 125.40 +.15%
  • Emerging Markets Currency Volatility(VXY) 7.24 -1.09%
  • S&P 500 Implied Correlation 29.33 +1.28%
  • ISE Sentiment Index 113.0 +24
  • Total Put/Call .65 -31.6%
  • NYSE Arms .72 -39.5%
Credit Investor Angst:
  • North American Investment Grade CDS Index 51.10 -1.47%
  • America Energy Sector High-Yield CDS Index 535.0 +4.6%
  • European Financial Sector CDS Index 56.89 -2.06%
  • Italian/German 10Y Yld Spread 139.75 +6.25 basis points
  • Asia Ex-Japan Investment Grade CDS Index 63.24 -1.04%
  • Emerging Market CDS Index 190.78 -1.52%
  • iBoxx Offshore RMB China Corporate High Yield Index 167.49 +.08%
  • 2-Year Swap Spread 4.25 +.25 basis point
  • TED Spread 34.75 -1.25 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -15.75 -3.75 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 66.22 +.05%
  • 3-Month T-Bill Yield 1.55% unch.
  • Yield Curve .21 -2.0 basis points
  • China Iron Ore Spot 79.90 USD/Metric Tonne -.51%
  • Citi US Economic Surprise Index 7.50 +.4 point
  • Citi Eurozone Economic Surprise Index -27.20 +.5 point
  • Citi Emerging Markets Economic Surprise Index -23.50 +.2 basis point
  • 10-Year TIPS Spread 1.71 +3.0 basis points
  • 22.1% chance of Fed rate cut at Jan. 29th meeting, 33.9% chance of cut at March 18th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +195 open in Japan 
  • China A50 Futures: Indicating +61 open in China
  • DAX Futures: Indicating -23 open in Germany
Portfolio:
  • Higher: On gains in my industrial/tech sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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