Wednesday, April 13, 2016

Stocks Surging into Final Hour on Central Bank Hopes, Diminished China Bubble-Bursting Fears, Short-Covering, Financial/Hospital Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Slightly Below Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 13.88 -6.53%
  • Euro/Yen Carry Return Index 128.81 -.27%
  • Emerging Markets Currency Volatility(VXY) 11.41 -.35%
  • S&P 500 Implied Correlation 56.90 -.04%
  • ISE Sentiment Index 130.0 +64.56%
  • Total Put/Call .59 -36.56%
  • NYSE Arms .85 +42.69
Credit Investor Angst:
  • North American Investment Grade CDS Index 78.70 -.99%
  • America Energy Sector High-Yield CDS Index 1,432.0 +6.69%
  • European Financial Sector CDS Index 93.90 -4.73%
  • Western Europe Sovereign Debt CDS Index 27.58 -.56%
  • Asia Pacific Sovereign Debt CDS Index 56.34 -2.04%
  • Emerging Market CDS Index 285.50 -3.56%
  • iBoxx Offshore RMB China Corporate High Yield Index 127.29 +.01%
  • 2-Year Swap Spread 12.0 -1.0 basis point
  • TED Spread 40.0 -1.75 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -24.0 -.5 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 72.77 +.11%
  • 3-Month T-Bill Yield .22% +1.0 basis point
  • Yield Curve 102.0 -3.0 basis points
  • China Import Iron Ore Spot $60.48/Metric Tonne +2.13%
  • Citi US Economic Surprise Index -4.80 -1.0 point
  • Citi Eurozone Economic Surprise Index -27.10 -.5 point
  • Citi Emerging Markets Economic Surprise Index 13.7 +1.0 point
  • 10-Year TIPS Spread 1.57% unch.
  • 17.6% chance of Fed rate hike at June 15 meeting, 27.3% chance at July 27 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +289 open in Japan 
  • China A50 Futures: Indicating +104 open in China
  • DAX Futures: Indicating +27 open in Germany
Portfolio: 
  • Higher: On gains in my biotech/medical/tech/retail sector longs
  • Disclosed Trades: Covered some of  my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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