Monday, January 06, 2020

Stocks Reversing Slightly Higher into Afternoon on Global Growth Optimism, Short-Covering, Technical Buying, Homebuilding/Energy Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Slightly Lower
  • Sector Performance: Mixed
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 14.6 +4.1%
  • Euro/Yen Carry Return Index 125.87 +.5%
  • Emerging Markets Currency Volatility(VXY) 6.75 +.3%
  • S&P 500 Implied Correlation 43.0 -3.7%
  • ISE Sentiment Index 114.0 +32
  • Total Put/Call .86 +.2%
  • NYSE Arms .91 -41.3%
Credit Investor Angst:
  • North American Investment Grade CDS Index 46.09 +1.2%
  • America Energy Sector High-Yield CDS Index 512.0 -2.89%
  • European Financial Sector CDS Index 54.87 +1.67%
  • Italian/German 10Y Yld Spread 164.75 +2.25 basis points
  • Asia Ex-Japan Investment Grade CDS Index 56.96 +4.72%
  • Emerging Market CDS Index 182.7 +.34%
  • iBoxx Offshore RMB China Corporate High Yield Index 168.22 +.21%
  • 2-Year Swap Spread 6.5 -2.75 basis points
  • TED Spread 36.75 -3.75 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap .25 -1.0 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 66.47 +.02%
  • 3-Month T-Bill Yield 1.52%  +2.0 basis points
  • Yield Curve .25 -5.0 basis points
  • China Iron Ore Spot 92.75 USD/Metric Tonne +1.11%
  • Citi US Economic Surprise Index -7.0 +2.3 points
  • Citi Eurozone Economic Surprise Index 43.0 +9.5 points
  • Citi Emerging Markets Economic Surprise Index -9.6 +1.1 basis points
  • 10-Year TIPS Spread 1.77 -1.0 basis point
  • 3.6% chance of Fed rate cut at March 18th meeting, 16.3% chance of cut at April 29th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +105 open in Japan 
  • China A50 Futures: Indicating +72 open in China
  • DAX Futures: Indicating +2 open in Germany
Portfolio:
  • Slightly Higher: On gains in my biotech/tech/retail/medical sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

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