Tuesday, May 24, 2016

Stocks Surging into Afternoon on Diminished Global Growth Fears, Oil Bounce, Yen Weakness, Homebuilding/Technology 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) 14.69 -7.08%
  • Euro/Yen Carry Return Index 128.15 +.08%
  • Emerging Markets Currency Volatility(VXY) 10.67 -.74%
  • S&P 500 Implied Correlation 55.33 -4.36%
  • ISE Sentiment Index 73.0 -3.0%
  • Total Put/Call 1.0 +1.01%
  • NYSE Arms 1.27 -12.79
Credit Investor Angst:
  • North American Investment Grade CDS Index 81.20 -2.77%
  • America Energy Sector High-Yield CDS Index 960.0 -3.80%
  • European Financial Sector CDS Index 93.25 -4.27%
  • Western Europe Sovereign Debt CDS Index 26.13 +1.28%
  • Asia Pacific Sovereign Debt CDS Index 53.66 -.19%
  • Emerging Market CDS Index 307.82 -1.33%
  • iBoxx Offshore RMB China Corporate High Yield Index 128.42 +.16%
  • 2-Year Swap Spread 14.25 +.5 basis point
  • TED Spread 32.50 -3.0 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -28.5 -1.75 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 70.55 -.10%
  • 3-Month T-Bill Yield .34% +2.0 basis points
  • Yield Curve 95.0 unch.
  • China Import Iron Ore Spot $51.36/Metric Tonne +.27%
  • Citi US Economic Surprise Index -22.0 +10.8 points
  • Citi Eurozone Economic Surprise Index 2.6 -2.2 points
  • Citi Emerging Markets Economic Surprise Index -1.8 unch.
  • 10-Year TIPS Spread 1.60% +1.0 basis point
  • 53.9% chance of Fed rate hike at July 27 meeting, 64.1% chance at September 21 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +260 open in Japan 
  • China A50 Futures: Indicating +68 open in China
  • DAX Futures: Indicating +4 open in Germany
Portfolio: 
  • Slightly Higher: On gains in my tech/biotech/retail/medical sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my (EEM) short
  • Market Exposure: Moved to 75% Net Long

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