Wednesday, January 08, 2020

Stocks Reversing Sharply Higher into Afternoon on Diminished Mideast Tensions, US Economic Data, Technical Buying, Tech/Homebuilding Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Above Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 13.2 -4.0%
  • Euro/Yen Carry Return Index 125.94 +.3%
  • Emerging Markets Currency Volatility(VXY) 6.70 +.6%
  • S&P 500 Implied Correlation 39.9 -3.7%
  • ISE Sentiment Index 111.0 -23
  • Total Put/Call .77 -6.1%
  • NYSE Arms 1.48 +45.1%
Credit Investor Angst:
  • North American Investment Grade CDS Index 4535 -2.26%
  • America Energy Sector High-Yield CDS Index 516.0 +2.97%
  • European Financial Sector CDS Index 52.67 -2.79%
  • Italian/German 10Y Yld Spread 162.0 -4.25 basis points
  • Asia Ex-Japan Investment Grade CDS Index 55.52 -.44%
  • Emerging Market CDS Index 180.35 -1.53%
  • iBoxx Offshore RMB China Corporate High Yield Index 168.33 +.09%
  • 2-Year Swap Spread 6.5 -.75 basis point
  • TED Spread 34.75 -.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -3.25 -4.5 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 66.64 +.42%
  • 3-Month T-Bill Yield 1.53% +1.0 basis point
  • Yield Curve .28 unch.
  • China Iron Ore Spot 93.90 USD/Metric Tonne +.43%
  • Citi US Economic Surprise Index .3 +4.6 points
  • Citi Eurozone Economic Surprise Index 43.70 +.9 point
  • Citi Emerging Markets Economic Surprise Index -7.5 +.9 basis point
  • 10-Year TIPS Spread 1.76 +1.0 basis point
  • 4.7% chance of Fed rate cut at March 18th meeting, 12.1% chance of cut at April 29th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +390 open in Japan 
  • China A50 Futures: Indicating +172 open in China
  • DAX Futures: Indicating +65 open in Germany
Portfolio:
  • Higher: On gains in my biotech/tech/industrial/medical/retail sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my emerging markets shorts
  • Market Exposure: Moved to 100% Net Long

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