Wednesday, October 14, 2020

Stocks Reversing Lower into Afternoon on Diminishing Stimulus Hopes, Virus Concerns, Biden Presidency/Tax Hike Fears, Tech/Biotech Sector Weakness

 Broad Equity Market Tone:

  • Advance/Decline Line: Lower
  • Sector Performance: Most Sectors Declining
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 26.7 +2.4%
  • Bloomberg Global Risk On/Risk Off Index 306.0 -133.0 points
  • Euro/Yen Carry Return Index 128.02 -.26%
  • Emerging Markets Currency Volatility(VXY) 11.21 -1.15%
  • S&P 500 Implied Correlation 44.7 +11.4%
  • ISE Sentiment Index 121.0 -4.0 points
  • Total Put/Call .69 -8.0%
  • NYSE Arms .59 -63.4%
Credit Investor Angst:
  • North American Investment Grade CDS Index 55.74 +1.75%
  • US Energy High-Yield OAS 805.87 -.65%
  • European Financial Sector CDS Index 70.68 +2.93%
  • Italian/German 10Y Yld Spread 124.0 +3.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 64.95 +2.2%
  • Emerging Market CDS Index 207.60 +2.57%
  • iBoxx Offshore RMB China Corporate High Yield Index 178.96 +.07%
  • 2-Year Swap Spread 9.25 +.25 basis point
  • TED Spread 13.0 +.25 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -11.0 unch.
  • MBS  5/10 Treasury Spread  86.0 +.25 basis point
  • IHS Markit CMBX BBB- 6 68.0 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 59.41 -.03%
  • 3-Month T-Bill Yield .10% +1.0 basis point
  • Yield Curve 59.25 -2.0 basis points
  • China Iron Ore Spot 114.83 USD/Metric Tonne -2.25%
  • Citi US Economic Surprise Index 137.6 +.2 point
  • Citi Eurozone Economic Surprise Index 35.80 -2.1 points
  • Citi Emerging Markets Economic Surprise Index 44.2 +1.1 points
  • 10-Year TIPS Spread 1.69 -1.0 basis point
  • 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 -31 open in Japan 
  • China A50 Futures: Indicating -79 open in China
  • DAX Futures: Indicating -66 open in Germany
Portfolio:
  • Slightly Higher: On gains in my industrial sector longs, index hedges and emerging market shorts
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 25% Net Long

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