Tuesday, November 03, 2020

Stocks Substantially Higher into Afternoon on Short-Covering, Anticipation of Less Election Uncertainty, Oil Gain, Retail/Healthcare Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 35.3 -4.9%
  • Bloomberg Global Risk On/Risk Off Index -131.0 +262.0 points
  • Euro/Yen Carry Return Index 126.81 +.42%
  • Emerging Markets Currency Volatility(VXY) 11.8 +.42%
  • S&P 500 Implied Correlation 66.8 -5.0%
  • ISE Sentiment Index 133.0 +49.0 points
  • Total Put/Call 1.10 +12.2%
  • NYSE Arms .93 +72.2%
Credit Investor Angst:
  • North American Investment Grade CDS Index 61.1 -4.1%
  • US Energy High-Yield OAS 833.96 -1.49%
  • European Financial Sector CDS Index 79.53 -5.97%
  • Italian/German 10Y Yld Spread 135.0 -4.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 68.5 -2.5%
  • Emerging Market CDS Index 212.27 -2.8%
  • iBoxx Offshore RMB China Corporate High Yield Index 180.17 +.09%
  • 2-Year Swap Spread 7.75 -.25 basis point
  • TED Spread 12.75 -.25 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -13.75 +1.5 basis points
  • MBS  5/10 Treasury Spread  78.0 -1.25 basis points
  • IHS Markit CMBX BBB- 6 66.75 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 59.0 +.73%
  • 3-Month T-Bill Yield .09% unch.
  • Yield Curve 70.75 unch.
  • China Iron Ore Spot 114.0 USD/Metric Tonne +1.08%
  • Citi US Economic Surprise Index 128.90 -2.2 points
  • Citi Eurozone Economic Surprise Index 96.8 -4.8 points
  • Citi Emerging Markets Economic Surprise Index 60.10 -1.1 points
  • 10-Year TIPS Spread 1.71 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 +535 open in Japan 
  • China A50 Futures: Indicating -19 open in China
  • DAX Futures: Indicating -32 open in Germany
Portfolio:
  • Higher: On gains in my medical/consumer staple/industrial/tech/biotech sector longs
  • Disclosed Trades: None
  • Market Exposure: 50% Net Long

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