Tuesday, June 28, 2016

Stocks Surging into Final Hour on Central Bank Hopes, Less European/Emerging Markets/US High-Yield Debt Angst, Short-Covering, Biotech/Financial Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Above Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 19.88 -16.69%
  • Euro/Yen Carry Return Index 118.57 +.84%
  • Emerging Markets Currency Volatility(VXY) 10.78 -6.1%
  • S&P 500 Implied Correlation 60.12 -6.47%
  • ISE Sentiment Index 82.0 +51.85%
  • Total Put/Call 1.15 -10.85%
  • NYSE Arms .77 -55.43
Credit Investor Angst:
  • North American Investment Grade CDS Index 86.20 -5.55%
  • America Energy Sector High-Yield CDS Index 842.0 +2.10%
  • European Financial Sector CDS Index 129.40 -5.31%
  • Western Europe Sovereign Debt CDS Index 35.93 -1.83%
  • Asia Pacific Sovereign Debt CDS Index 53.99 -3.43%
  • Emerging Market CDS Index 294.65 -3.84%
  • iBoxx Offshore RMB China Corporate High Yield Index 130.04 +.07%
  • 2-Year Swap Spread 11.5 -.25 basis point
  • TED Spread 37.5 -1.0 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -38.25 +.75 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 71.74 +1.23%
  • 3-Month T-Bill Yield .25% +1.0 basis point
  • Yield Curve 85.0 -1.0 basis point
  • China Import Iron Ore Spot $53.65/Metric Tonne -.39%
  • Citi US Economic Surprise Index -20.5 +2.8 points
  • Citi Eurozone Economic Surprise Index -.6 -3.6 points
  • Citi Emerging Markets Economic Surprise Index -8.5 -1.3 points
  • 10-Year TIPS Spread 1.40% +3.0 basis points
  • 0.0% chance of Fed rate hike at Sept. 21 meeting, 0.0% chance at Nov. 2 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +272 open in Japan 
  • China A50 Futures: Indicating +27 open in China
  • DAX Futures: Indicating +40 open in Germany
Portfolio: 
  • Slightly Higher: On gains in my biotech/retail/tech/medical sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my emerging markets shorts
  • Market Exposure: Moved to 75% Net Long

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