Monday, October 12, 2020

Stocks Surging into Afternoon on Stimulus Hopes, Earnings Optimism, Technical Buying, Tech/Biotech Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Below Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 25.4 +1.6%
  • Bloomberg Global Risk On/Risk Off Index 444.0 +41.0 points
  • Euro/Yen Carry Return Index 128.87 -.41%
  • Emerging Markets Currency Volatility(VXY) 11.47 +.70%
  • S&P 500 Implied Correlation 40.6 -2.5%
  • ISE Sentiment Index 155.0 +16.0 points
  • Total Put/Call .69 -17.9%
  • NYSE Arms 1.17 -4.1%
Credit Investor Angst:
  • North American Investment Grade CDS Index 53.39 -.2%
  • US Energy High-Yield OAS 808.19 n/a
  • European Financial Sector CDS Index 66.57 -2.17%
  • Italian/German 10Y Yld Spread 122.0 -3.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 64.35 -1.95%
  • Emerging Market CDS Index 199.0 +2.43%
  • iBoxx Offshore RMB China Corporate High Yield Index 178.80 +.1%
  • 2-Year Swap Spread 8.75 unch.
  • TED Spread 13.0 +.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -9.5 +.25 basis point
  • MBS  5/10 Treasury Spread  85.0 unch.
  • IHS Markit CMBX BBB- 6 68.0 +.5 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 59.68 -.16%
  • 3-Month T-Bill Yield .09% unch.
  • Yield Curve 62.5 unch.
  • China Iron Ore Spot 118.41 USD/Metric Tonne -.95%
  • Citi US Economic Surprise Index 137.9 -12.0 points
  • Citi Eurozone Economic Surprise Index 46.20 -3.5 points
  • Citi Emerging Markets Economic Surprise Index 41.7 -3.2 points
  • 10-Year TIPS Spread 1.74 +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 +102 open in Japan 
  • China A50 Futures: Indicating +1 open in China
  • DAX Futures: Indicating +17 open in Germany
Portfolio:
  • Higher: On gains in my medical/industrial/consumer staple/tech/biotech sector longs
  • Disclosed Trades: None
  • Market Exposure: 75% Net Long

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