Friday, July 17, 2020

Stocks Mostly Higher into Afternoon on Global Stimulus Hopes, Short-Covering, Technical Buying, Biotech/Transport Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Mixed
  • Volume: Light
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 26.3 -6.0%
  • Euro/Yen Carry Return Index 126.88 +.25%
  • Emerging Markets Currency Volatility(VXY) 9.58 unch.
  • S&P 500 Implied Correlation 55.9 -2.1%
  • ISE Sentiment Index 100.0 -9.0 points
  • Total Put/Call .70 unch.
  • NYSE Arms 1.79 +36.6%
Credit Investor Angst:
  • North American Investment Grade CDS Index 72.02 -.54%
  • US Energy High-Yield OAS 895.75 +.04%
  • European Financial Sector CDS Index 70.99 +.04%
  • Italian/German 10Y Yld Spread 165.0 -.25 basis point
  • Asia Ex-Japan Investment Grade CDS Index  78.69 -.58%
  • Emerging Market CDS Index 19224 -2.73%
  • iBoxx Offshore RMB China Corporate High Yield Index 175.18 +.05%
  • 2-Year Swap Spread 7.75 +.5 basis point
  • TED Spread 16.75 +1.25 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -7.0 -1.0 basis point
  • MBS  5/10 Treasury Spread  99.75 +3.5 basis points
  • IHS Markit CMBX BBB- 6 67.25 -.5 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 60.69 unch.
  • 3-Month T-Bill Yield .11% +1.0 basis point
  • Yield Curve 48.0 +1.25 basis points
  • China Iron Ore Spot 107.01 USD/Metric Tonne -.02%
  • Citi US Economic Surprise Index 259.1 -11.7 points
  • Citi Eurozone Economic Surprise Index -7.1 +6.9 points
  • Citi Emerging Markets Economic Surprise Index -11.1 +.2 point
  • 10-Year TIPS Spread 1.40 -1.0 basis point
  • 100.0% chance of no change at Sept. 16 meeting, 100.0% chance of no change at Nov. 5th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +18 open in Japan 
  • China A50 Futures: Indicating +21 open in China
  • DAX Futures: Indicating +9 open in Germany
Portfolio:
  • Higher: On gains in my tech/biotech/medical/industrial/consumer staple sector longs
  • Disclosed Trades: None
  • Market Exposure: 50% Net Long

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