Tuesday, July 20, 2021

Stocks Surging into Afternoon on Earnings Optimism, Stable Long-Term Rates, Oil Gain, Financial/Consumer Discretionary Sector Strength

 

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Every Sector Rising
  • Volume: Around Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 20.4 -9.3%
  • Bloomberg Global Risk On/Risk Off Index 2,533.0 +182.0 points
  • Euro/Yen Carry Return Index 133.62 +.18%
  • Emerging Markets Currency Volatility(VXY) 8.8 +.8%
  • S&P 500 Implied Correlation 41.1 -7.9%
  • ISE Sentiment Index 105.0  +19.0 points
  • Total Put/Call .72 -28.7%
  • NYSE Arms .60 -63.4%
Credit Investor Angst:
  • North American Investment Grade CDS Index 51.15 -.65%
  • US Energy High-Yield OAS 445.15 +1.2%
  • European Financial Sector CDS Index 56.99 +1.0%
  • Italian/German 10Y Yld Spread 110.0 unch.
  • Asia Ex-Japan Investment Grade CDS Index 86.62 +1.56%
  • Emerging Market CDS Index 163.24 -2.27%
  • China Corp. High-Yield Bond USD ETF(KCCB) 38.81 -.31%
  • 2-Year Swap Spread 8.0 +1.25 basis points
  • TED Spread 9.25 +.25 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -4.5 unch.
  • MBS  5/10 Treasury Spread  74.0 +1.0 basis point
  • IHS Markit CMBX BBB- 6 73.75 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 59.71 +.11%
  • 3-Month T-Bill Yield .04% unch.
  • Yield Curve 98.0 -8.0 basis points
  • China Iron Ore Spot 213.0 USD/Metric Tonne +1.1%
  • Citi US Economic Surprise Index 14.4 -3.2 points
  • Citi Eurozone Economic Surprise Index 64.2 -3.2 points
  • Citi Emerging Markets Economic Surprise Index 60.3 +1.1 points
  • 10-Year TIPS Spread 2.26 -2.0 basis points
  • 100.0% chance of no change at Nov. 3rd meeting, 100.0% chance of no change at Dec. 15th meeting
US Covid-19:
  • 75 infections/100K people(last 7 days) +7/100K people
  • 14% of Jan. 7th, 2021 peak(highest daily avg. new infections) +1.0 percentage point
Overseas Futures:
  • Nikkei 225 Futures: Indicating +352 open in Japan 
  • China A50 Futures: Indicating +9 open in China
  • DAX Futures: Indicating +35 open in Germany
Portfolio:
  • Higher: On gains in my tech/industrial/medical/biotech sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and added consumer discretionary longs
  • Market Exposure: Moved to 100% Net Long

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