Monday, May 16, 2016

Stocks Surging into Final Hour on Central Bank Hopes, Oil Gain, Yen Weakness, Biotech/Energy Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 14.32 -4.79%
  • Euro/Yen Carry Return Index 128.93 +.46%
  • Emerging Markets Currency Volatility(VXY) 10.92 +.74%
  • S&P 500 Implied Correlation 52.33 -3.22%
  • ISE Sentiment Index 69.0 -21.59%
  • Total Put/Call .77 -31.86%
  • NYSE Arms .63 -70.66% 
Credit Investor Angst:
  • North American Investment Grade CDS Index 81.17 -2.5%
  • America Energy Sector High-Yield CDS Index 932.0 -.45%
  • European Financial Sector CDS Index 99.0 +1.05%
  • Western Europe Sovereign Debt CDS Index 25.68 -1.21%
  • Asia Pacific Sovereign Debt CDS Index 53.38 -.33%
  • Emerging Market CDS Index 289.70 -.43%
  • iBoxx Offshore RMB China Corporate High Yield Index 127.88 -.01%
  • 2-Year Swap Spread 12.75 -.5 basis point
  • TED Spread 36.25 unch.
  • 3-Month EUR/USD Cross-Currency Basis Swap -22.75 -1.25 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 71.50 +.23%
  • 3-Month T-Bill Yield .27% unch.
  • Yield Curve 97.0 +1.0 basis point
  • China Import Iron Ore Spot $54.34/Metric Tonne -.37%
  • Citi US Economic Surprise Index -36.20 -3.2 points
  • Citi Eurozone Economic Surprise Index -5.2 +1.8 points
  • Citi Emerging Markets Economic Surprise Index -2.4 -2.5 points
  • 10-Year TIPS Spread 1.63% +1.0 basis point
  • 19.4% chance of Fed rate hike at July 27 meeting, 37.1% chance at September 21 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +190 open in Japan 
  • China A50 Futures: Indicating -35 open in China
  • DAX Futures: Indicating n/a open in Germany
Portfolio: 
  • Slightly Higher: On gains in my biotech/tech/medical/retail sector longs 
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added some back
  • Market Exposure: Moved to 50% Net Long

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