Wednesday, April 26, 2017

Stocks Rising into Final Hour on Healthcare/Tax Reform Hopes, Earnings Optimism, Yen Weakness, Homebuilder/Retail Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Above Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 10.50 -2.42%
  • Euro/Yen Carry Return Index 126.69 -.06%
  • Emerging Markets Currency Volatility(VXY) 8.77 +1.86%
  • S&P 500 Implied Correlation 41.76 +.14%
  • ISE Sentiment Index 103.0 +9.57%
  • Total Put/Call .72 -11.11%
  • NYSE Arms 1.06 +16.19%
Credit Investor Angst:
  • North American Investment Grade CDS Index 62.86 -.61%
  • America Energy Sector High-Yield CDS Index 371.0 -1.32%
  • European Financial Sector CDS Index 74.0 -.64%
  • Western Europe Sovereign Debt CDS Index 9.60 +3.90%
  • Asia Pacific Sovereign Debt CDS Index 22.57 -1.27%
  • Emerging Market CDS Index 201.12 +1.80%
  • iBoxx Offshore RMB China Corporate High Yield Index 137.13 unch.
  • 2-Year Swap Spread 31.25 -1.75 basis points
  • TED Spread 35.50 -1.0 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -27.75 -1.5 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 72.24 -.59%
  • 3-Month T-Bill Yield .81% unch.
  • Yield Curve 104.0 -2.0 basis points
  • China Import Iron Ore Spot $66.62/Metric Tonne +.83%
  • Citi US Economic Surprise Index 7.10 -.2 point
  • Citi Eurozone Economic Surprise Index 50.30 -.6 point
  • Citi Emerging Markets Economic Surprise Index 38.9 +.3 point
  • 10-Year TIPS Spread 1.92 unch.
  • 69.7% chance of Fed rate hike at June 14 meeting, 72.6% chance at July 26 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -4 open in Japan 
  • China A50 Futures: Indicating +3 open in China
  • DAX Futures: Indicating +5 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 100% Net Long

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