Monday, August 24, 2020

Stocks Higher into Final Hour on Coronavirus Treatment Optimism, Cental Bank Stimulus Hopes, Short-Covering, Airline/Energy Sector Strength

 Broad Equity Market Tone:

  • Advance/Decline Line: Modestly Higher
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 22.7 +.8%
  • Euro/Yen Carry Return Index 129.52 +.12%
  • Emerging Markets Currency Volatility(VXY) 11.25 +.18%
  • S&P 500 Implied Correlation 38.07 -6.5%
  • ISE Sentiment Index 75.0 -36.0 points
  • Total Put/Call .74 +4.2%
  • NYSE Arms .66 -27.5%
Credit Investor Angst:
  • North American Investment Grade CDS Index 66.37 -1.69%
  • US Energy High-Yield OAS 779.24 -.46%
  • European Financial Sector CDS Index 62.22 -2.25%
  • Italian/German 10Y Yld Spread 142.50 +.5 basis point
  • Asia Ex-Japan Investment Grade CDS Index  62.84 -2.53%
  • Emerging Market CDS Index 179.53 -2.08%
  • iBoxx Offshore RMB China Corporate High Yield Index 177.41 +.12%
  • 2-Year Swap Spread 6.75 -1.25 basis points
  • TED Spread 16.25 -.25 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -2.5 -1.5 basis points
  • MBS  5/10 Treasury Spread  89.0 +.25 basis point
  • IHS Markit CMBX BBB- 6 68.25 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 60.11 +.11%
  • 3-Month T-Bill Yield .9% unch.
  • Yield Curve 48.5 -.75 basis point
  • China Iron Ore Spot 120.0 USD/Metric Tonne -1.4%
  • Citi US Economic Surprise Index 236.70 -17.9 points
  • Citi Eurozone Economic Surprise Index 133.20 +.7 point
  • Citi Emerging Markets Economic Surprise Index 25.4 -.7 point
  • 10-Year TIPS Spread 1.68 +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 +74 open in Japan 
  • China A50 Futures: Indicating -63 open in China
  • DAX Futures: Indicating -31 open in Germany
Portfolio:
  • Slightly Lower: On losses in my biotech/medical sector longs, index hedges and emerging market shorts
  • Disclosed Trades: None
  • Market Exposure: 50% Net Long

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