Thursday, November 05, 2020

Stocks Substantially Higher into Afternoon on Stimulus Hopes, Dollar Weakness, Short-Covering, Tech/Alt Energy Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Above Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 27.4 -7.3%
  • Bloomberg Global Risk On/Risk Off Index 372.0 +212.0 points
  • Euro/Yen Carry Return Index 126.89 -.05%
  • Emerging Markets Currency Volatility(VXY) 10.9 unch.
  • S&P 500 Implied Correlation 52.9 -10.0%
  • ISE Sentiment Index 100.0 +5.0 points
  • Total Put/Call .80 -17.5%
  • NYSE Arms .74 -53.2%
Credit Investor Angst:
  • North American Investment Grade CDS Index 54.07 -6.0%
  • US Energy High-Yield OAS 803.29 -2.53%
  • European Financial Sector CDS Index 69.37 -8.92%
  • Italian/German 10Y Yld Spread 131.0 -2.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 64.73 -4.67%
  • Emerging Market CDS Index 192.31 -5.08%
  • iBoxx Offshore RMB China Corporate High Yield Index 180.37 +.07%
  • 2-Year Swap Spread 8.75 unch.
  • TED Spread 13.75 +.75 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -12.25 -1.5 basis points
  • MBS  5/10 Treasury Spread  75.25 -3.0 basis points
  • IHS Markit CMBX BBB- 6 68.25 +.5 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 59.71 +.88%
  • 3-Month T-Bill Yield .08% -1.0 basis point
  • Yield Curve 59.25 -6.5 basis points
  • China Iron Ore Spot 113.90 USD/Metric Tonne +.68%
  • Citi US Economic Surprise Index 120.50 -2.7 points
  • Citi Eurozone Economic Surprise Index 96.90 -4.2 points
  • Citi Emerging Markets Economic Surprise Index 54.50 -5.0 points
  • 10-Year TIPS Spread 1.66 +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 +138 open in Japan 
  • China A50 Futures: Indicating +217 open in China
  • DAX Futures: Indicating -48 open in Germany
Portfolio:
  • Higher: On gains in my medical/consumer staple/tech/industrial sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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