Friday, November 08, 2019

Stocks Reversing Higher into Final Hour on Earnings Optimism, Diminishing Global Growth Worries, Technical Buying, Biotech/Tech Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Aaround Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 12.5 -1.6%
  • Euro/Yen Carry Return Index 124.88 -.4%
  • Emerging Markets Currency Volatility(VXY) 7.15 unch.
  • S&P 500 Implied Correlation 28.9 -9.1%
  • ISE Sentiment Index 125.0 +12
  • Total Put/Call .95 +46.2%
  • NYSE Arms .96 +31.5%
Credit Investor Angst:
  • North American Investment Grade CDS Index 51.44 +.12%
  • America Energy Sector High-Yield CDS Index 535.0 +.02%
  • European Financial Sector CDS Index 57.13 +.42%
  • Italian/German 10Y Yld Spread 145.5 +5.75 basis points
  • Asia Ex-Japan Investment Grade CDS Index 63.02 -.64%
  • Emerging Market CDS Index 193.94 +1.43%
  • iBoxx Offshore RMB China Corporate High Yield Index 167.55 +.03%
  • 2-Year Swap Spread 4.5 +.25 basis point
  • TED Spread 35.5 +.75 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -16.25 -.5 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 65.95 -.40%
  • 3-Month T-Bill Yield 1.54% -1.0 basis point
  • Yield Curve .24 +3.0 basis points
  • China Iron Ore Spot 77.80 USD/Metric Tonne -2.31%
  • Citi US Economic Surprise Index 7.20 -.3 point
  • Citi Eurozone Economic Surprise Index -25.30 +1.9 points
  • Citi Emerging Markets Economic Surprise Index -21.40 +2.1 basis points
  • 10-Year TIPS Spread 1.73 +2.0 basis points
  • 18.6% chance of Fed rate cut at Jan. 29th meeting, 30.9% chance of cut at March 18th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +78 open in Japan 
  • China A50 Futures: Indicating +38 open in China
  • DAX Futures: Indicating +21 open in Germany
Portfolio:
  • Higher: On gains in my tech/biotech sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

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