North American Investment Grade CDS Index 88.78 bps -1.06%
European Financial Sector CDS Index 97.91 bps +9.87%
Western Europe Sovereign Debt CDS Index 100.17 bps unch.
Emerging Market CDS Index 211.21 bps -.51%
2-Year Swap Spread 18.0 unch.
TED Spread 17.0 unch.
Economic Gauges:
3-Month T-Bill Yield .15% unch.
Yield Curve 274.0 -1 bp
China Import Iron Ore Spot $184.80/Metric Tonne +.05%
Citi US Economic Surprise Index +23.50 +1.9 points
10-Year TIPS Spread 2.37% +3 bps
Overseas Futures:
Nikkei Futures: Indicating +120 open in Japan
DAX Futures: Indicating +20 open in Germany
Portfolio:
Higher: On gains in my Biotech, Financial and Tech long positions
Disclosed Trades: None
Market Exposure: 100% Net Long
BOTTOM LINE: Today's overall market action is bullish as equities reverse morning losses and move to session highs on good volume. On the positive side, Airline, Gaming, Homebuilding, Disk Drive, Computer Hardware, Oil Service, Energy and Coal stocks are especially strong, rising 2.0%+. Cyclicals are relatively strong again. (IYR) has outperformed throughout most of the day. The US scrap steel benchmark price is rising another +4.2% today and has risen +6.2% over the last five days. On the negative side, Education and Wireless shares are under meaningful pressure, falling .75%+. The Greece sovereign cds is rising another +2.4% today to 626.0 bps and the Portugal sovereign cds is jumping +5.6% to 276.75 bps. As I said yesterday, it appears as though US assets are under accumulation by global financial institutions that are fleeing the instability in Europe. Moreover, the US economy is currently in a "Goldilocks" position compared to most of the rest of the world. Investors seem to perceive Asia/Latin America as running too hot, while most of Europe is viewed as running too cold. One of my longs, (DISCA), is hitting another new all-time high today. I would wait for a market-related pullback before accumulating more shares in this stock that I still view as having strong longer-term fundamentals. Here are the other recently mentioned positions that I am still long: (AAPL), (GOOG), (CREE), (RUE), (F), (SXCI), (ISRG), (HGSI) and (ASEI). I expect US stocks to trade modestly higher into the close from current levels on short-covering, less financial sector pessimism, diminishing economic fear and earnings optimism.
No comments:
Post a Comment