Tuesday, April 25, 2017

Stocks Surging into Final Hour on Tax Reform Hopes, Earnings Optimism, Yen Weakness, Financial/Restaurant 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) 10.79 -.46%
  • Euro/Yen Carry Return Index 126.82 +1.79%
  • Emerging Markets Currency Volatility(VXY) 8.52 -.53%
  • S&P 500 Implied Correlation 41.53 -.41%
  • ISE Sentiment Index 96.0 +14.3%
  • Total Put/Call .82 -21.90%
  • NYSE Arms 1.12 +43.69%
Credit Investor Angst:
  • North American Investment Grade CDS Index 62.73 -3.30%
  • America Energy Sector High-Yield CDS Index 375.0 +1.44%
  • European Financial Sector CDS Index 74.48 -4.48%
  • Western Europe Sovereign Debt CDS Index 9.24 -3.35%
  • Asia Pacific Sovereign Debt CDS Index 22.86 -.74%
  • Emerging Market CDS Index 197.84 -1.25%
  • iBoxx Offshore RMB China Corporate High Yield Index 137.13 +.09%
  • 2-Year Swap Spread 33.0 -.25 basis point
  • TED Spread 36.50 -.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -26.25 +.75 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 72.65 -.08%
  • 3-Month T-Bill Yield .81% +3.0 basis points
  • Yield Curve 106.0 +1.0 basis point
  • China Import Iron Ore Spot $66.07/Metric Tonne -.69%
  • Citi US Economic Surprise Index 7.30 +6.5 points
  • Citi Eurozone Economic Surprise Index 50.90 -.5 point
  • Citi Emerging Markets Economic Surprise Index 38.6 +1.2 points
  • 10-Year TIPS Spread 1.92 +4.0 basis points
  • 69.7% chance of Fed rate hike at June 14 meeting, 72.6% chance at July 26 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +186 open in Japan 
  • China A50 Futures: Indicating +8 open in China
  • DAX Futures: Indicating +40 open in Germany
Portfolio: 
  • Higher: On gains in my biotech/retail/tech/medical sector longs 
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

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