Monday, December 28, 2020

Stocks Rising into Final Hour on Vaccine Hopes, Year-End Window Dressing, Technical Buying, Financial/Transport Sector Strength

 Broad Equity Market Tone:

  • Advance/Decline Line: Modestly Higher
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 21.3 -.9%
  • Bloomberg Global Risk On/Risk Off Index 1,478.0 -54.0 points
  • Euro/Yen Carry Return Index 131.18 +.62%
  • Emerging Markets Currency Volatility(VXY) 10.7 +2.1%
  • S&P 500 Implied Correlation 47.6 +.6%
  • ISE Sentiment Index 122.0 +14.0 points
  • Total Put/Call .66 -19.5%
  • NYSE Arms 1.29 -39.4%
Credit Investor Angst:
  • North American Investment Grade CDS Index 52.02 -2.93%
  • US Energy High-Yield OAS 566.86 -1.18%
  • European Financial Sector CDS Index 58.12 -.29%
  • Italian/German 10Y Yld Spread 110.0 -3.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 57.78 -.14%
  • Emerging Market CDS Index 154.91 -1.85%
  • iBoxx Offshore RMB China Corporate High Yield Index 184.13 +.16%
  • 2-Year Swap Spread 8.25 -.5 basis point
  • TED Spread 16.0 -.25 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -16.5 +6.25 basis points
  • MBS  5/10 Treasury Spread  73.5 -1.25 basis points
  • IHS Markit CMBX BBB- 6 72.66 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 62.68 +.23%
  • 3-Month T-Bill Yield .09% +1.0 basis point
  • Yield Curve 82.5 unch.
  • China Iron Ore Spot 165.66 USD/Metric Tonne +2.11%
  • Citi US Economic Surprise Index 43.80 -6.2 points
  • Citi Eurozone Economic Surprise Index 192.20 -8.0 points
  • Citi Emerging Markets Economic Surprise Index 68.6 -2.0 points
  • 10-Year TIPS Spread 1.97 unch.
  • 100.0% chance of no change at March 17th meeting, 100.0% chance of no change at April 28th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +66 open in Japan 
  • China A50 Futures: Indicating +49 open in China
  • DAX Futures: Indicating -21 open in Germany
Portfolio:
  • Slightly Higher: On gains in my tech/medical/industrial/consumer staple sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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