Wednesday, June 07, 2017

Stocks Modestly Higher into Final Hour on Diminishing Political Concerns, Yen Weakness, Technical Buying, Financial/Transport Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Slightly Higher
  • Sector Performance: Mixed
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 10.47 +.29%
  • Euro/Yen Carry Return Index 129.04 +.19%
  • Emerging Markets Currency Volatility(VXY) 8.15 +.49%
  • S&P 500 Implied Correlation 41.11 +.54%
  • ISE Sentiment Index 65.0 -20.7%
  • Total Put/Call .92 +19.48%
  • NYSE Arms 1.26 +46.43%
Credit Investor Angst:
  • North American Investment Grade CDS Index 61.0 +.83%
  • America Energy Sector High-Yield CDS Index 397.0 +2.17%
  • European Financial Sector CDS Index 68.95 -3.55%
  • Western Europe Sovereign Debt CDS Index 8.26 -1.02%
  • Asia Pacific Sovereign Debt CDS Index 18.37 -1.53%
  • Emerging Market CDS Index 194.64 +1.73%
  • iBoxx Offshore RMB China Corporate High Yield Index 138.76 +.03%
  • 2-Year Swap Spread 20.75 unch.
  • TED Spread 23.25 -2.0 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -32.25 -.75 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 73.24 -.33%
  • 3-Month T-Bill Yield .99% +2.0 basis points
  • Yield Curve 86.0 +1.0 basis point
  • China Import Iron Ore Spot $55.43/Metric Tonne -1.07%
  • Citi US Economic Surprise Index -42.40 -.6 point
  • Citi Eurozone Economic Surprise Index 39.0 -3.8 points
  • Citi Emerging Markets Economic Surprise Index 8.90 -1.2 points
  • 10-Year TIPS Spread 1.80 unch.
  • 95.8% chance of Fed rate hike at July 26 meeting, 96.8% chance at Sept. 20 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +36 open in Japan 
  • China A50 Futures: Indicating -52 open in China
  • DAX Futures: Indicating +11 open in Germany
Portfolio: 
  • Higher: On gains in my retail/tech/medical sector longs 
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

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