Stocks Substantially Higher into Afternoon on Oil Gain, Technical Buying, Short-Covering, Tech/Homebuilding Sector Strength

 Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 28.8 -8.4%
• Bloomberg Global Risk On/Risk Off Index 123.0 +211.0 points

• Euro/Yen Carry Return Index 129.92 +.44%

• Emerging Markets Currency Volatility(VXY) 11.49 +.97%

• S&P 500 Implied Correlation 50.1 +.48%

• ISE Sentiment Index 112.0 -15.0 points

• Total Put/Call .82 -8.9%

• NYSE Arms 1.17 +10.4%

Credit Investor Angst:

• North American Investment Grade CDS Index 67.1 -2.77%
  

• US Energy High-Yield OAS 793.80 +.69%

• European Financial Sector CDS Index 61.69 -2.0%

• Italian/German 10Y Yld Spread 151.25 -1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index  59.90 +1.73%
  

• Emerging Market CDS Index 168.85 -2.0%
  

• iBoxx Offshore RMB China Corporate High Yield Index 177.86 -.01%

• 2-Year Swap Spread 8.5 unch.

• TED Spread 13.5 -.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -5.25 +.75 basis point
  
• MBS  5/10 Treasury Spread  89.25 -.75 basis point
  
• IHS Markit CMBX BBB- 6 68.25 unch.

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 60.55 +.54%
• 3-Month T-Bill Yield .11% unch.

• Yield Curve 52.75 -4.25 basis points
  

• China Iron Ore Spot 122.01 USD/Metric Tonne +.58%

• Citi US Economic Surprise Index 183.10 -.8 point

• Citi Eurozone Economic Surprise Index 93.90 -2.0 points

• Citi Emerging Markets Economic Surprise Index 29.3 +3.4 points

• 10-Year TIPS Spread 1.71 +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 +67 open in Japan 
• China A50 Futures: Indicating +69 open in China

• DAX Futures: Indicating +29 open in Germany

Portfolio:

• Slightly Higher: On gains in my industrial/tech/medical/biotech/consumer staple sector longs
  

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my emerging market shorts, then added some back
  

• Market Exposure: Moved to 50% Net Long