Monday, August 03, 2020

Stocks Higher into Final Hour on Global Stimulus Hopes, Oil Gain, Short-Covering, Tech/Biotech Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 24.3 -.6%
  • Euro/Yen Carry Return Index 129.20 -.05%
  • Emerging Markets Currency Volatility(VXY) 10.4 +1.3%
  • S&P 500 Implied Correlation 54.5 -7.0%
  • ISE Sentiment Index 144 .0 +75.0 points
  • Total Put/Call .63 -23.2%
  • NYSE Arms 1.10 -10.6%
Credit Investor Angst:
  • North American Investment Grade CDS Index 67.41 -2.96%
  • US Energy High-Yield OAS 836.0 -1.4%
  • European Financial Sector CDS Index 70.53 -3.65%
  • Italian/German 10Y Yld Spread 152.0 +1.25 basis points
  • Asia Ex-Japan Investment Grade CDS Index  71.71 -1.91%
  • Emerging Market CDS Index 188.84 -1.14%
  • iBoxx Offshore RMB China Corporate High Yield Index 176.72 -.11%
  • 2-Year Swap Spread 7.5 +.25 basis point
  • TED Spread 16.5 -1.0 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -2.75 +1.5 basis points
  • MBS  5/10 Treasury Spread  81.0 -6.25 basis points
  • IHS Markit CMBX BBB- 6 67.25 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 60.87 -.36%
  • 3-Month T-Bill Yield .08% -1.0 basis point
  • Yield Curve 43.25 +2.25 basis points
  • China Iron Ore Spot 111.57 USD/Metric Tonne -.04%
  • Citi US Economic Surprise Index 225.4 -21.4 points
  • Citi Eurozone Economic Surprise Index 182.80 +16.5 points
  • Citi Emerging Markets Economic Surprise Index -7.5 -5.6 points
  • 10-Year TIPS Spread 1.59 +4.0 basis points
  • 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 +185 open in Japan 
  • China A50 Futures: Indicating +5 open in China
  • DAX Futures: Indicating +7 open in Germany
Portfolio:
  • Higher: On gains in my tech/biotech/industrial/medical sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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