Friday, June 02, 2017

Stocks Rising into Final Hour on Less European/Emerging Markets Debt Angst, Technical Buying, Short-Covering, Homebuilding/Biotech Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Around Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 9.83 -.61%
  • Euro/Yen Carry Return Index 130.05 -.22%
  • Emerging Markets Currency Volatility(VXY) 8.12 -1.46%
  • S&P 500 Implied Correlation 38.98 -5.07%
  • ISE Sentiment Index 85.0 +11.84%
  • Total Put/Call .78 -22.0%
  • NYSE Arms 1.74 +57.10%
Credit Investor Angst:
  • North American Investment Grade CDS Index 60.03 -3.27%
  • America Energy Sector High-Yield CDS Index 376.0 +.89%
  • European Financial Sector CDS Index 70.35 +.67%
  • Western Europe Sovereign Debt CDS Index 8.12 -2.46%
  • Asia Pacific Sovereign Debt CDS Index 19.10 -.80%
  • Emerging Market CDS Index 191.71 -.97%
  • iBoxx Offshore RMB China Corporate High Yield Index 138.66 +.01%
  • 2-Year Swap Spread 22.5 -.25 basis point
  • TED Spread 24.75 +1.5 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -31.25 +2.25 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 73.36 +.21%
  • 3-Month T-Bill Yield .97% unch.
  • Yield Curve 88.0 -4.0 basis points
  • China Import Iron Ore Spot $57.79/Metric Tonne -.21%
  • Citi US Economic Surprise Index -40.90 -4.8 points
  • Citi Eurozone Economic Surprise Index 43.60 +.1 point
  • Citi Emerging Markets Economic Surprise Index 10.70 -.3 point
  • 10-Year TIPS Spread 1.82 -2.0 basis points
  • 93.5% chance of Fed rate hike at July 26 meeting, 95.2% chance at Sept. 20 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -12 open in Japan 
  • China A50 Futures: Indicating -22 open in China
  • DAX Futures: Indicating +20 open in Germany
Portfolio: 
  • Higher: On gains in my tech/medical/biotech sector longs 
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

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