Friday, December 28, 2018

Stocks Reversing Higher into Final Hour on Bargain-Hunting, Technical Buying, Short-Covering, Retail/Tech 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) 28.6 -4.6%
  • Euro/Yen Carry Return Index 131.22 -.51%
  • Emerging Markets Currency Volatility(VXY) 9.73 -.31%
  • S&P 500 Implied Correlation 51.06 +7.4%
  • ISE Sentiment Index 82.0 -22.6%
  • Total Put/Call .87 -7.45%
  • NYSE Arms .99 +47.8%
Credit Investor Angst:
  • North American Investment Grade CDS Index 88.16 -.75%
  • America Energy Sector High-Yield CDS Index 809.0 -3.52%
  • European Financial Sector CDS Index 111.99 -2.94%
  • Italian/German 10Y Yld Spread 250.0 -8.0 basis points
  • Asia Pacific Sovereign Debt CDS Index 11.75 unch.
  • Emerging Market CDS Index 208.65 -1.13%
  • iBoxx Offshore RMB China Corporate High Yield Index 151.12 +.30%
  • 2-Year Swap Spread 14.5 +1.0 basis points
  • TED Spread 41.25 -.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap 1.50 +2.25 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 66.94 +.25%
  • 3-Month T-Bill Yield 2.37% -6.0 basis points
  • Yield Curve 20.5 +2.0 basis points
  • China Iron Ore Spot 69.58 USD/Metric Tonne +.1%
  • Citi US Economic Surprise Index -17.9 -2.5 points
  • Citi Eurozone Economic Surprise Index -73.30 +.5 point
  • Citi Emerging Markets Economic Surprise Index -7.7 -3.3 points
  • 10-Year TIPS Spread 1.74 -3.0 basis points
  • 5.7% chance of Fed rate hike at March 20th meeting, 9.5% chance at May 1st meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +60 open in Japan 
  • China A50 Futures: Indicating +48 open in China
  • DAX Futures: Indicating +32 open in Germany
Portfolio: 
  • Higher: On gains in my tech/biotech/retail/medical/industrial sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my emerging market shorts
  • Market Exposure: Moved to 100% Net Long

No comments: