Wednesday, January 29, 2020

Stocks Higher into Final Hour on Earnings Optimism, FOMC Commentary, Short-Covering, Road&Rail/Industrial Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Lower
  • Sector Performance: Mixed
  • Volume: Around Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 15.5 -4.9%
  • Euro/Yen Carry Return Index 124.63 -.16%
  • Emerging Markets Currency Volatility(VXY) 6.40 1.69%
  • S&P 500 Implied Correlation 41.5 -4.0%
  • ISE Sentiment Index 76.0 -43
  • Total Put/Call .78 -1.27%
  • NYSE Arms 1.11 +50.0%
Credit Investor Angst:
  • North American Investment Grade CDS Index 46.82 -.99%
  • America Energy Sector High-Yield CDS Index 623.0 -1.11%
  • European Financial Sector CDS Index 52.86 -1.19%
  • Italian/German 10Y Yld Spread 133.0 -4.25 basis points
  • Asia Ex-Japan Investment Grade CDS Index 56.03 +.39%
  • Emerging Market CDS Index 190.38 -.95%
  • iBoxx Offshore RMB China Corporate High Yield Index 169.86 +.04%
  • 2-Year Swap Spread 6.25 unch.
  • TED Spread 21.25 -3.75 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -5.25 +.75 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 65.65 -.21%
  • 3-Month T-Bill Yield 1.55% -1.0 basis point
  • Yield Curve .20 +2.0 basis points
  • China Iron Ore Spot 85.0 USD/Metric Tonne +.65%
  • Citi US Economic Surprise Index 7.0 -.3 point
  • Citi Eurozone Economic Surprise Index 40.60 -.5 point
  • Citi Emerging Markets Economic Surprise Index 12.8 +.2 point
  • 10-Year TIPS Spread 1.64 -1.0 basis point
  • 19.0% chance of Fed April 29th meeting, 40.3% chance of cut at June 10th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -44 open in Japan 
  • China A50 Futures: Indicating -681 open in China
  • DAX Futures: Indicating +14 open in Germany
Portfolio:
  • Slightly Higher: On gains in my tech/biotech/medical/retail/industrial sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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