Wednesday, August 18, 2010

Stocks Reversing Higher into Final Hour on Less Economic Fear, Short-Covering, Lower Energy Prices, Technical Buying


Broad Market Tone:

  • Advance/Decline Line: Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • VIX 23.65 -2.75%
  • ISE Sentiment Index 102.0 -.97%
  • Total Put/Call 1.24 +24.0%
  • NYSE Arms .72 -1.59%
Credit Investor Angst:
  • North American Investment Grade CDS Index 105.30 bps -1.36%
  • European Financial Sector CDS Index 109.58 bps -1.93%
  • Western Europe Sovereign Debt CDS Index 134.33 bps +.07%
  • Emerging Market CDS Index 224.12 bps -.15%
  • 2-Year Swap Spread 18.0 -1 bp
  • TED Spread 20.0 unch.
Economic Gauges:
  • 3-Month T-Bill Yield .15% unch.
  • Yield Curve 214.0 +1 bp
  • China Import Iron Ore Spot $147.60/Metric Tonne -.54%
  • Citi US Economic Surprise Index -53.0 +.2 point
  • 10-Year TIPS Spread 1.60% -2 bps
Overseas Futures:
  • Nikkei Futures: Indicating +15 open in Japan
  • DAX Futures: Indicating +14 open in Germany
Portfolio:
  • Higher: On gains in my Tech, Ag, Retail and Medical long positions
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long
BOTTOM LINE: Today's overall market action is mildly bullish as the S&P 500 is trading slightly higher despite euro weakness. On the positive side, Road&Rail, Education, Retail, Homebuilding, Construction, Telecom, Disk Drive, Computer, Semi and Gold stocks are especially strong, rising 1.0%+. (XLF) has outperformed slightly throughout the day. Trading in the tech sector continues to improve. The 10-year yield is flat, but near session highs at 2.63%. Lumber is rising another +1.58%. Oil is trading very poorly given the recent bounce in stocks/euro, hurricane season, deafening Iran rumors and increase in spec long positions. The European Investment Grade CDS Index is falling -2.41% to 100.83 bps, the Japan sovereign cds is falling -3.19% to 67.39 bps and the US Muni CDS Index is declining -2.43% to 220.75 bps. On the negative side, Oil Service, Energy, Coal and Utility shares are lower on the day. Gold continues to trade well and market volume remains anemic. The average stock is performing much better than the major averages today. I still suspect stocks will build further on their recent rally before week's end. (HPQ)'s report after the close tomorrow has taken on added significance given recent negative comments from analysts regarding pc sales. I expect US stocks to trade mixed-to-higher into the close from current levels on less economic fear, short-covering, bargain-hunting, lower energy prices and technical buying.

4 comments:

Anonymous said...

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Gary said...

Thanks.

Energy Audit said...

The information which you have shared here is very accurate and I was also expecting this much of data from this.

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