Wednesday, July 14, 2021

Stocks Higher into Afternoon on More Dovish Fed Commentary, Lower Long-Term Rates, Dollar Weakness, REIT/Homebuilding Sector Strength

Broad Equity Market Tone:

  • Advance/Decline Line: Substantially Lower
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 16.5 -3.6%
  • Bloomberg Global Risk On/Risk Off Index 3,069.0 -23.0 points
  • Euro/Yen Carry Return Index 134.34 -.14%
  • Emerging Markets Currency Volatility(VXY) 8.7 -.6%
  • S&P 500 Implied Correlation 48.7 +13.9%
  • ISE Sentiment Index 113.0  +42.0 points
  • Total Put/Call .81 unch.
  • NYSE Arms 1.15 +4.6%
Credit Investor Angst:
  • North American Investment Grade CDS Index 48.33 -.22%
  • US Energy High-Yield OAS 385.66 +2.1%
  • European Financial Sector CDS Index 54.05 +.25%
  • Italian/German 10Y Yld Spread 103.0 +2.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 87.48 -1.59%
  • Emerging Market CDS Index 160.80 -1.42%
  • China Corp. High-Yield Bond USD ETF(KCCB) 39.06 +.23%
  • 2-Year Swap Spread 7.75 unch.
  • TED Spread 8.75 +.25 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -4.25 +.5 basis point
  • MBS  5/10 Treasury Spread  69.75 +1.25 basis points
  • IHS Markit CMBX BBB- 6 73.75 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 60.12 +.45%
  • 3-Month T-Bill Yield .05% unch.
  • Yield Curve 115.0 +1.0 basis point
  • China Iron Ore Spot 209.0 USD/Metric Tonne -.44%
  • Citi US Economic Surprise Index 22.7 +1.9 points
  • Citi Eurozone Economic Surprise Index 77.30 -4.9 points
  • Citi Emerging Markets Economic Surprise Index 59.1 -4.4 points
  • 10-Year TIPS Spread 2.35 -2.0 basis points
  • 100.0% chance of no change at Nov. 3rd meeting, 100.0% chance of no change at Dec. 15th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +7 open in Japan 
  • China A50 Futures: Indicating -104 open in China
  • DAX Futures: Indicating -9 open in Germany
Portfolio:
  • Slightly Higher: On gains in my industrial/tech sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

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