Thursday, June 02, 2016

Stocks Reversing Slightly Higher into Final Hour on Less Emerging Markets Debt Angst, Short-Covering, Technical Buying, Biotech/Healthcare Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Higher
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 13.81 -2.75%
  • Euro/Yen Carry Return Index 126.85 -.96%
  • Emerging Markets Currency Volatility(VXY) 10.25 -1.44%
  • S&P 500 Implied Correlation 52.42 -.83%
  • ISE Sentiment Index 72.0 -31.43%
  • Total Put/Call .91 -11.65%
  • NYSE Arms .74 -32.73
Credit Investor Angst:
  • North American Investment Grade CDS Index 77.51 +.23%
  • America Energy Sector High-Yield CDS Index 894.0 +.47%
  • European Financial Sector CDS Index 94.44 +1.81%
  • Western Europe Sovereign Debt CDS Index 25.90 +4.71%
  • Asia Pacific Sovereign Debt CDS Index 53.25 +.41%
  • Emerging Market CDS Index 298.43 -.37%
  • iBoxx Offshore RMB China Corporate High Yield Index 128.88 +.08%
  • 2-Year Swap Spread 15.25 +.5 basis point
  • TED Spread 39.5 +5.75 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -34.0 -3.5 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 70.59 +.08%
  • 3-Month T-Bill Yield .27% -3.0 basis points
  • Yield Curve 92.0 -3.0 basis points
  • China Import Iron Ore Spot $48.18/Metric Tonne -.45%
  • Citi US Economic Surprise Index -16.30 +.7 point
  • Citi Eurozone Economic Surprise Index 2.50 -1.8 points
  • Citi Emerging Markets Economic Surprise Index 7.2 +4.0 points
  • 10-Year TIPS Spread 1.58% unch.
  • 54.8% chance of Fed rate hike at July 27 meeting, 61.1% chance at September 21 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +14 open in Japan 
  • China A50 Futures: Indicating -181 open in China
  • DAX Futures: Indicating +33 open in Germany
Portfolio: 
  • Higher: On gains in my biotech/retail/medical sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 50% Net Long

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