Thursday, April 20, 2017

Stocks Surging into Final Hour on Healthcare/Tax Reform Hopes, Subsiding European Election Fears, Earnings Optimism, Financial/Transport 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) 13.93 -6.7%
  • Euro/Yen Carry Return Index 122.35 +.53%
  • Emerging Markets Currency Volatility(VXY) 9.02 -1.53%
  • S&P 500 Implied Correlation 45.35 -4.41%
  • ISE Sentiment Index 87.0 +14.47%
  • Total Put/Call .88 +18.92%
  • NYSE Arms .92 -36.51%
Credit Investor Angst:
  • North American Investment Grade CDS Index 67.74 -1.82%
  • America Energy Sector High-Yield CDS Index 373.0 +.99%
  • European Financial Sector CDS Index 90.82 -1.01%
  • Western Europe Sovereign Debt CDS Index 11.92 +.46%
  • Asia Pacific Sovereign Debt CDS Index 24.60 -.32%
  • Emerging Market CDS Index 209.39 -1.23%
  • iBoxx Offshore RMB China Corporate High Yield Index 137.02 +.08%
  • 2-Year Swap Spread 33.5 +.75 basis point
  • TED Spread 35.75 +1.25 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -30.0 -1.0 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 72.24 +.24%
  • 3-Month T-Bill Yield .78% -2.0 basis points
  • Yield Curve 104.0 +1.0 basis point
  • China Import Iron Ore Spot $65.36/Metric Tonne +1.18%
  • Citi US Economic Surprise Index 6.30 -.1 point
  • Citi Eurozone Economic Surprise Index 38.50 +.2 point
  • Citi Emerging Markets Economic Surprise Index 40.2 +1.1 points
  • 10-Year TIPS Spread 1.87 +1.0 basis point
  • 59.3% chance of Fed rate hike at June 14 meeting, 62.0% chance at July 26 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +205 open in Japan 
  • China A50 Futures: Indicating +4 open in China
  • DAX Futures: Indicating +50 open in Germany
Portfolio: 
  • Higher: On gains in my biotech/medical/retail/tech sector longs 
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

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