Monday, September 14, 2020

Stocks Higher into Final Hour on Buyout Speculation, Central Bank Stimulus Hopes, Short-Covering, Biotech/Healthcare Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Every Sector Rising
  • Volume: Below Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 25.5 -5.0%
  • Bloomberg Global Risk On/Risk Off Index 335.0 +141.0 points
  • Euro/Yen Carry Return Index 129.93 -.26%
  • Emerging Markets Currency Volatility(VXY) 11.2 -1.2%
  • S&P 500 Implied Correlation 50.4 -5.0%
  • ISE Sentiment Index 116.0 +16.0 points
  • Total Put/Call .76 -23.2%
  • NYSE Arms .77 +5.5%
Credit Investor Angst:
  • North American Investment Grade CDS Index 68.60 -1.49%
  • US Energy High-Yield OAS 812.66 +1.02%
  • European Financial Sector CDS Index 64.42 -1.9%
  • Italian/German 10Y Yld Spread 151.25 +8.75 basis points
  • Asia Ex-Japan Investment Grade CDS Index  57.98 -1.66%
  • Emerging Market CDS Index 169.49 -.93%
  • iBoxx Offshore RMB China Corporate High Yield Index 177.92 +.02%
  • 2-Year Swap Spread 8.25 unch.
  • TED Spread 14.25 +.25 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -6.75 -1.25 basis points
  • MBS  5/10 Treasury Spread  91.25 +1.0 basis point
  • IHS Markit CMBX BBB- 6 66.75 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 60.69 +.26%
  • 3-Month T-Bill Yield .11% unch.
  • Yield Curve 53.75 unch.
  • China Iron Ore Spot 125.58 USD/Metric Tonne +.54%
  • Citi US Economic Surprise Index 181.5 -6.5 points
  • Citi Eurozone Economic Surprise Index 83.0 -7.4 points
  • Citi Emerging Markets Economic Surprise Index 46.7 +3.7 points
  • 10-Year TIPS Spread 1.65 -2.0 basis points
  • 100.0% chance of no change at Nov. 5th meeting, 100.0% chance of no change at Dec. 16th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -204 open in Japan 
  • China A50 Futures: Indicating -83 open in China
  • DAX Futures: Indicating -15 open in Germany
Portfolio:
  • Higher: On gains in my industrial/biotech/consumer staple/medical/tech sector longs
  • Disclosed Trades: None
  • Market Exposure: 50% Net Long

 

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