Wednesday, August 28, 2019

Stocks Rising into Final Hour on Diminished Global Growth Fears, Oil Gain, Short-Covering, Retail/Energy Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Below Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 19.3 -5.0%
  • Euro/Yen Carry Return Index 122.0 +.16%
  • Emerging Markets Currency Volatility(VXY) 9.03 -.66%
  • S&P 500 Implied Correlation 45.83 -2.66%
  • ISE Sentiment Index 82.0 -15.5%
  • Total Put/Call 1.22 +28.4%
  • NYSE Arms .75 -40.0%
Credit Investor Angst:
  • North American Investment Grade CDS Index 55.11 -2.4%
  • America Energy Sector High-Yield CDS Index 424.0 +.02%
  • European Financial Sector CDS Index 60.53 +.07%
  • Italian/German 10Y Yld Spread 175.75 -7.5 basis points
  • Asia Ex-Japan Investment Grade CDS Index 66.65 +1.05%
  • Emerging Market CDS Index 218.29 +1.23%
  • iBoxx Offshore RMB China Corporate High Yield Index 164.84 +.03%
  • 2-Year Swap Spread -.75 +1.5 basis points
  • TED Spread 14.0 -4.5 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -15.50 -.5 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 64.86 -.20%
  • 3-Month T-Bill Yield 1.98% +2.0 basis points
  • Yield Curve -.04 unch.
  • China Iron Ore Spot 81.50 USD/Metric Tonne +1.24%
  • Citi US Economic Surprise Index -12.6 +1.1 points
  • Citi Eurozone Economic Surprise Index -41.30 +.7 point
  • Citi Emerging Markets Economic Surprise Index -19.7 +.8 point
  • 10-Year TIPS Spread 1.56+1.0 basis point
  • 100.0% chance of Fed rate cut at Oct. 30th meeting, 100.0% chance of cut at Dec. 11th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +31 open in Japan 
  • China A50 Futures: Indicating +18 open in China
  • DAX Futures: Indicating -1 open in Germany
Portfolio:
  • Higher: On gains in my medical/biotech/retail/industrial sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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