Wednesday, October 21, 2020

Stocks Modestly Higher into Final Hour on Stimulus Hopes, Earnings Optimism, Technical Buying, Tech/Healthcare Sector Strength

Broad Equity Market Tone:

  • Advance/Decline Line: Lower
  • Sector Performance: Most Sectors Declining
  • Volume: Around Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 29.1 -1.0%
  • Bloomberg Global Risk On/Risk Off Index 172.0 +89.0 points
  • Euro/Yen Carry Return Index 128.5 -.56%
  • Emerging Markets Currency Volatility(VXY) 11.0 +.46%
  • S&P 500 Implied Correlation 53.1 +.11%
  • ISE Sentiment Index 104.0 -5.0 points
  • Total Put/Call .90 +16.9%
  • NYSE Arms .69 -10.4%
Credit Investor Angst:
  • North American Investment Grade CDS Index 57.25 -.91%
  • US Energy High-Yield OAS 805.25 -.02%
  • European Financial Sector CDS Index 72.09 -.61%
  • Italian/German 10Y Yld Spread 137.0 +4.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 65.68 -.53%
  • Emerging Market CDS Index 201.99 -.96%
  • iBoxx Offshore RMB China Corporate High Yield Index 179.84 +.19%
  • 2-Year Swap Spread 8.75 -.25 basis point
  • TED Spread 11.5 -1.25 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -13.5 -1.75 basis points
  • MBS  5/10 Treasury Spread  81.75 +.25 basis point
  • IHS Markit CMBX BBB- 6 68.25 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 59.88 +.45%
  • 3-Month T-Bill Yield .09% unch.
  • Yield Curve 67.25 +5.25 basis points
  • China Iron Ore Spot 117.5 USD/Metric Tonne +1.12%
  • Citi US Economic Surprise Index 125.9 -2.2 points
  • Citi Eurozone Economic Surprise Index 7.90 -8.5 points
  • Citi Emerging Markets Economic Surprise Index 40.90 +.1 point
  • 10-Year TIPS Spread 1.73 unch.
  • 100.0% chance of no change at Dec. 16th meeting, 100.0% chance of no change at Jan. 27th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -60 open in Japan 
  • China A50 Futures: Indicating -4 open in China
  • DAX Futures: Indicating +7 open in Germany
Portfolio:
  • Slightly Higher: On gains in my tech/medical sector longs
  • Disclosed Trades: None
  • Market Exposure: 50% Net Long

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