Thursday, February 13, 2020

Stocks Reversing Higher into Afternoon on US Earnings Optimism, Short-Covering, Technical Buying, Utility/Restaurant Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Lower
  • Sector Performance: Mixed
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 14.1 +2.6%
  • Euro/Yen Carry Return Index 123.52 -.55%
  • Emerging Markets Currency Volatility(VXY) 6.76 +.3%
  • S&P 500 Implied Correlation 36.5 +3.1%
  • ISE Sentiment Index 76.0 -27
  • Total Put/Call .75 +5.6%
  • NYSE Arms 1.38 +66.3%
Credit Investor Angst:
  • North American Investment Grade CDS Index 43.99 -.21%
  • America Energy Sector High-Yield CDS Index 617.0 -1.5%
  • European Financial Sector CDS Index 47.77 +.95%
  • Italian/German 10Y Yld Spread 129.25 +.25 basis point
  • Asia Ex-Japan Investment Grade CDS Index 49.81 +1.54%
  • Emerging Market CDS Index 193.75 +.94%
  • iBoxx Offshore RMB China Corporate High Yield Index 169.97 +.05%
  • 2-Year Swap Spread 3.25 -1.0 basis point
  • TED Spread 13.5 -.75 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -7.75 -.75 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 65.03 -.09%
  • 3-Month T-Bill Yield 1.58%+1.0 basis point
  • Yield Curve .18 unch.
  • China Iron Ore Spot 85.55 USD/Metric Tonne +.3%
  • Citi US Economic Surprise Index 45.10 -1.2 points
  • Citi Eurozone Economic Surprise Index -19.4 -.1 point
  • Citi Emerging Markets Economic Surprise Index 22.6 +1.5 points
  • 10-Year TIPS Spread 1.67 unch.
  • 26.7% chance of Fed April 29th meeting, 42.0% chance of cut at June 10th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -57 open in Japan 
  • China A50 Futures: Indicating -70 open in China
  • DAX Futures: Indicating +5 open in Germany
Portfolio:
  • Higher: On gains in my tech/medical sector longs and emerging market shorts
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

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