Wednesday, September 27, 2017

Stocks Surging into Final Hour on Tax/Healthcare Reform Hopes, Economic Optimism, Yen Weakness, Tech/Financial Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Around Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 9.69 -4.7%
  • Euro/Yen Carry Return Index 138.15 +.15%
  • Emerging Markets Currency Volatility(VXY) 8.27 +2.35%
  • S&P 500 Implied Correlation 22.47 -3.51%
  • ISE Sentiment Index 110.0 +4.76%
  • Total Put/Call .80 -15.79%
  • NYSE Arms .91 -25.49%
Credit Investor Angst:
  • North American Investment Grade CDS Index 57.63 -2.16%
  • America Energy Sector High-Yield CDS Index 417.0 -3.55%
  • European Financial Sector CDS Index 59.57 -1.46%
  • Western Europe Sovereign Debt CDS Index 4.98 -2.74%
  • Asia Pacific Sovereign Debt CDS Index 17.13 +3.79%
  • Emerging Market CDS Index 189.69 +.12%
  • iBoxx Offshore RMB China Corporate High Yield Index 141.99 +.08%
  • 2-Year Swap Spread 25.25 -1.5 basis points
  • TED Spread 26.75 -2.25 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -32.75 -.5 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 73.50 -.59%
  • 3-Month T-Bill Yield 1.05% unch.
  • Yield Curve 83.0 +3.0 basis points
  • China Import Iron Ore Spot $64.15/Metric Tonne -1.23%
  • Citi US Economic Surprise Index -9.30 +3.8 points
  • Citi Eurozone Economic Surprise Index 45.70 +8.0 points
  • Citi Emerging Markets Economic Surprise Index 13.80 -.8 basis point
  • 10-Year TIPS Spread 1.87 +2.0 basis points
  • 73.4% chance of Fed rate hike at Dec. 13 meeting, 74.4% chance at Jan. 31 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +163 open in Japan 
  • China A50 Futures: Indicating +28 open in China
  • DAX Futures: Indicating +24 open in Germany
Portfolio: 
  • Higher: On gains in my retail/tech/biotech sector longs and emerging markets shorts
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

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