Wednesday, October 07, 2020

Stocks Surging into Final Hour on Vaccine/Treatment Optimism, Stimulus Hopes, Short-Covering, Biotech/Financial Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 28.0 -4.9%
  • Bloomberg Global Risk On/Risk Off Index 193.0 +177.0 points
  • Euro/Yen Carry Return Index 129.2 +.6%
  • Emerging Markets Currency Volatility(VXY) 11.7 +.7%
  • S&P 500 Implied Correlation 49.6 -8.3%
  • ISE Sentiment Index 104.0 +10.0 points
  • Total Put/Call .74 -11.9%
  • NYSE Arms .56 -69.5%
Credit Investor Angst:
  • North American Investment Grade CDS Index 55.80 -3.77%
  • US Energy High-Yield OAS 825.09 -1.35%
  • European Financial Sector CDS Index 70.10 -2.94%
  • Italian/German 10Y Yld Spread 128.0 unch.
  • Asia Ex-Japan Investment Grade CDS Index 70.56 -1.5%
  • Emerging Market CDS Index 210.16 -2.83%
  • iBoxx Offshore RMB China Corporate High Yield Index 178.19 +.02%
  • 2-Year Swap Spread 8.5 -.25 basis point
  • TED Spread 13.0 -1.75 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -8.5 +.5 basis point
  • MBS  5/10 Treasury Spread  85.0 -2.25 basis points
  • IHS Markit CMBX BBB- 6 67.0 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 59.42 +.08%
  • 3-Month T-Bill Yield .09% unch.
  • Yield Curve 60.0 -2.5 basis points
  • China Iron Ore Spot 117.40 USD/Metric Tonne -.11%
  • Citi US Economic Surprise Index 155.2 -2.1 points
  • Citi Eurozone Economic Surprise Index 47.60 -5.1 points
  • Citi Emerging Markets Economic Surprise Index 46.8 -.6 point
  • 10-Year TIPS Spread 1.70 +2.0 basis points
  • 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 +88 open in Japan 
  • China A50 Futures: Indicating +275 open in China
  • DAX Futures: Indicating -7 open in Germany
Portfolio:
  • Slightly Lower: On losses in my index hedges and emerging market shorts
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 50% Net Long

 

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