Wednesday, December 26, 2018

Stocks Soaring into Final Hour on Bargain-Hunting, Short-Covering, Technical Buying, Tech/Biotech Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Above Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 32.49 -9.93%
  • Euro/Yen Carry Return Index 131.06 +.33%
  • Emerging Markets Currency Volatility(VXY) 9.60 unch.
  • S&P 500 Implied Correlation 45.95 -6.09%
  • ISE Sentiment Index 138.0 +50.0%
  • Total Put/Call 1.12 -14.5%
  • NYSE Arms .56 -73.58%
Credit Investor Angst:
  • North American Investment Grade CDS Index 91.11 -3.96%
  • America Energy Sector High-Yield CDS Index 821.0 +2.06%
  • European Financial Sector CDS Index 114.65 +.21%
  • Italian/German 10Y Yld Spread 258.0 unch.
  • Asia Pacific Sovereign Debt CDS Index 11.75 +.23%
  • Emerging Market CDS Index 213.58 -.82%
  • iBoxx Offshore RMB China Corporate High Yield Index 151.0 +.02%
  • 2-Year Swap Spread 13.5 -1.75 basis points
  • TED Spread 41.75 -.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -1.75 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 66.63 -.09%
  • 3-Month T-Bill Yield 2.43% +5.0 basis points
  • Yield Curve 18.5 +3.25 basis points
  • China Iron Ore Spot 70.46 USD/Metric Tonne +1.12%
  • Citi US Economic Surprise Index -15.4 +.9 point
  • Citi Eurozone Economic Surprise Index -73.80 +3.7 points
  • Citi Emerging Markets Economic Surprise Index -4.4 +.5 point
  • 10-Year TIPS Spread 1.77 -1.0 basis point
  • 13.9% chance of Fed rate hike at March 20th meeting, 19.0% chance at May 1st meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +601 open in Japan 
  • China A50 Futures: Indicating +27 open in China
  • DAX Futures: Indicating n/a 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

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