Thursday, June 01, 2017

Stocks Rising into Final Hour on Economic Optimism, Yen Weakness, Short-Covering, Healthcare/Retail 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) 10.11 -2.88%
  • Euro/Yen Carry Return Index 130.38 +.32%
  • Emerging Markets Currency Volatility(VXY) 8.23 -1.08%
  • S&P 500 Implied Correlation 39.89 +1.66%
  • ISE Sentiment Index 98.0 +13.95%
  • Total Put/Call .96 -4.95%
  • NYSE Arms 1.03 -22.67%
Credit Investor Angst:
  • North American Investment Grade CDS Index 60.66 -1.78%
  • America Energy Sector High-Yield CDS Index 371.0 -.92%
  • European Financial Sector CDS Index 70.88 +1.73%
  • Western Europe Sovereign Debt CDS Index 8.32 +2.02%
  • Asia Pacific Sovereign Debt CDS Index 19.25 -2.01%
  • Emerging Market CDS Index 193.61 -.85%
  • iBoxx Offshore RMB China Corporate High Yield Index 138.65 +.06%
  • 2-Year Swap Spread 22.75 -.5 basis point
  • TED Spread 23.25 unch.
  • 3-Month EUR/USD Cross-Currency Basis Swap -33.50 +1.0 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 73.21 +.05%
  • 3-Month T-Bill Yield .97% unch.
  • Yield Curve 92.0 unch.
  • China Import Iron Ore Spot $55.97/Metric Tonne -1.84%
  • Citi US Economic Surprise Index -36.10 +2.1 points
  • Citi Eurozone Economic Surprise Index 43.50 +2.9 points
  • Citi Emerging Markets Economic Surprise Index 11.0 +3.6 points
  • 10-Year TIPS Spread 1.84 +1.0 basis point
  • 91.4% chance of Fed rate hike at July 26 meeting, 94.0% chance at Sept. 20 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +65 open in Japan 
  • China A50 Futures: Indicating +1 open in China
  • DAX Futures: Indicating +29 open in Germany
Portfolio: 
  • Higher: On gains in my retail/tech/medical/biotech sector longs 
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

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