Friday, August 28, 2020

Stocks Higher into Final Hour on Trump Speech, Global Central Bank Hopes, Technical Buying, Gaming/Airline Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Higher
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 23.8 -2.7%
  • Bloomberg Global Risk On/Risk Off Index 555.0 +77.0 points
  • Euro/Yen Carry Return Index 129.86 -.53%
  • Emerging Markets Currency Volatility(VXY) 11.03 -.63%
  • S&P 500 Implied Correlation 37.4 -1.7%
  • ISE Sentiment Index 124.0 +22.0 points
  • Total Put/Call .66 +6.5%
  • NYSE Arms .66 -22.2%
Credit Investor Angst:
  • North American Investment Grade CDS Index 67.12 -.63%
  • US Energy High-Yield OAS 760.65 +.25%
  • European Financial Sector CDS Index 61.30 +1.66%
  • Italian/German 10Y Yld Spread 143.5 +.25 basis point
  • Asia Ex-Japan Investment Grade CDS Index  62.07 -.08%
  • Emerging Market CDS Index 175.25 -2.9%
  • iBoxx Offshore RMB China Corporate High Yield Index 177.58 +.04%
  • 2-Year Swap Spread 9.0 +.25 basis point
  • TED Spread 16.0 unch.
  • 3-Month EUR/USD Cross-Currency Basis Swap -4.5 -1.0 basis point
  • MBS  5/10 Treasury Spread  93.5 +3.25 basis points
  • IHS Markit CMBX BBB- 6 68.25 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 60.83 +1.12%
  • 3-Month T-Bill Yield .10% unch.
  • Yield Curve 61.5 +8.5 basis points
  • China Iron Ore Spot 119.70 USD/Metric Tonne +2.1%
  • Citi US Economic Surprise Index 242.50 -.3 point
  • Citi Eurozone Economic Surprise Index 151.9 +5.9 points
  • Citi Emerging Markets Economic Surprise Index 25.0 +.4 point
  • 10-Year TIPS Spread 1.77 +3.0 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 -12 open in Japan 
  • China A50 Futures: Indicating -58 open in China
  • DAX Futures: Indicating -7 open in Germany
Portfolio:
  • Slightly Higher: On gains in my industrial/consumer staple/tech sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

 

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