Thursday, August 27, 2020

Stocks Higher into Afternoon on Central Bank Hopes, Diminishing Coronavirus Fears, Technical Buying, Financial/Transport Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Lower
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 24.4 +4.9%
  • Bloomberg Global Risk On/Risk Off Index 568.0 -45.0 points
  • Euro/Yen Carry Return Index 130.63 +.54%
  • Emerging Markets Currency Volatility(VXY) 11.13 -.45%
  • S&P 500 Implied Correlation 38.48 +1.29%
  • ISE Sentiment Index 102.0 -28.0 points
  • Total Put/Call .61 -6.15%
  • NYSE Arms .83 -23.2%
Credit Investor Angst:
  • North American Investment Grade CDS Index 67.28 +.94%
  • US Energy High-Yield OAS 761.09 -.61%
  • European Financial Sector CDS Index 60.30 -1.69%
  • Italian/German 10Y Yld Spread 143.25 -1.75 basis points
  • Asia Ex-Japan Investment Grade CDS Index  62.29 +.37%
  • Emerging Market CDS Index 181.22 +.98%
  • iBoxx Offshore RMB China Corporate High Yield Index 177.51 +.01%
  • 2-Year Swap Spread 8.75 +.75 basis point
  • TED Spread 16.0 +2.25 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -3.5 -1.5 basis points
  • MBS  5/10 Treasury Spread  90.25 unch.
  • IHS Markit CMBX BBB- 6 68.25 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 60.18 +.15%
  • 3-Month T-Bill Yield .10% unch.
  • Yield Curve 53.0 -2.0 basis points
  • China Iron Ore Spot 118.0 USD/Metric Tonne -1.20%
  • Citi US Economic Surprise Index 242.80 +4.7 points
  • Citi Eurozone Economic Surprise Index 146.0 +2.3 points
  • Citi Emerging Markets Economic Surprise Index 24.6 -.3 point
  • 10-Year TIPS Spread 1.74 +1.0 basis point
  • 100.0% chance of no change at Nov. 5th meeting, 100.0% chance of no change at Dec. 16th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +12 open in Japan 
  • China A50 Futures: Indicating -26 open in China
  • DAX Futures: Indicating -25 open in Germany
Portfolio:
  • Higher: On gains in my medical/industrial/consumer staple/biotech sector longs and emerging market shorts
  • Disclosed Trades: None
  • Market Exposure: 50% Net Long

 

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