Thursday, September 28, 2017

Stocks Reversing Slightly Higher into Final Hour on Tax Reform Hopes, Economic Optimism, Short-Covering, Homebuilding/Restaurant Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Higher
  • Sector Performance: Mixed
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 9.75 -1.11%
  • Euro/Yen Carry Return Index 138.18 +.02%
  • Emerging Markets Currency Volatility(VXY) 8.16 -1.69%
  • S&P 500 Implied Correlation 22.26 -4.38%
  • ISE Sentiment Index 112.0 +9.8%
  • Total Put/Call .75 -9.64%
  • NYSE Arms 1.12 +30.7%
Credit Investor Angst:
  • North American Investment Grade CDS Index 56.86 -1.61%
  • America Energy Sector High-Yield CDS Index 409.0 -.86%
  • European Financial Sector CDS Index 60.2 +.88%
  • Western Europe Sovereign Debt CDS Index 5.16 +3.93%
  • Asia Pacific Sovereign Debt CDS Index 17.69 +3.36%
  • Emerging Market CDS Index 186.59 -1.38%
  • iBoxx Offshore RMB China Corporate High Yield Index 141.99 unch.
  • 2-Year Swap Spread 25.5 +.25 basis point
  • TED Spread 28.75 +2.0 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -39.75 -7.0 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 73.60 +.17%
  • 3-Month T-Bill Yield 1.05% unch.
  • Yield Curve 86.0 +3.0 basis points
  • China Import Iron Ore Spot $62.89/Metric Tonne -1.96%
  • Citi US Economic Surprise Index -8.50 +.8 point
  • Citi Eurozone Economic Surprise Index 54.10 +8.4 points
  • Citi Emerging Markets Economic Surprise Index 13.30 -.5 basis point
  • 10-Year TIPS Spread 1.88 +1.0 basis point
  • 69.9% chance of Fed rate hike at Dec. 13 meeting, 71.1% chance at Jan. 31 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +7 open in Japan 
  • China A50 Futures: Indicating +10 open in China
  • DAX Futures: Indicating +5 open in Germany
Portfolio: 
  • Slightly Higher: On gains in my tech/biotech sector longs
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

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