Tuesday, May 22, 2018

Stocks Slightly Higher into Afternoon on Less Emerging Markets Debt Angst, Stable Long-Term Rates, Earnings Optimism, Financial/Biotech Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Around Even
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 13.0 -.8%
  • Euro/Yen Carry Return Index 136.15 -.12%
  • Emerging Markets Currency Volatility(VXY) 8.95 -1.9%
  • S&P 500 Implied Correlation 34.15 -.99%
  • ISE Sentiment Index 117.0 -1.68%
  • Total Put/Call .77 -6.1%
  • NYSE Arms .69 -29.5%
Credit Investor Angst:
  • North American Investment Grade CDS Index 61.33 -.83%
  • America Energy Sector High-Yield CDS Index 349.0 -1.31%
  • European Financial Sector CDS Index 67.78 -.21%
  • Italian/German 10Y Yld Spread 176.75 -10.0 basis points
  • Asia Pacific Sovereign Debt CDS Index 12.38 -.80%
  • Emerging Market CDS Index 161.29 -2.94%
  • iBoxx Offshore RMB China Corporate High Yield Index 149.54 +.02%
  • 2-Year Swap Spread 23.5 +.25 basis point
  • TED Spread 40.25 -2.75 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -10.75 -1.25 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 71.37 +.29%
  • 3-Month T-Bill Yield 1.93% +3.0 basis points
  • Yield Curve 49.75 -.75 basis point
  • China Iron Ore Spot 64.35 USD/Metric Tonne +.36%
  • Citi US Economic Surprise Index 10.90 -.4 point
  • Citi Eurozone Economic Surprise Index -79.80 +1.6 points
  • Citi Emerging Markets Economic Surprise Index -5.60 -.1 point
  • 10-Year TIPS Spread 2.18 +1.0 basis point
  • 100.0% chance of Fed rate hike at August 1 meeting, 100.0% chance at September 26 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +20  open in Japan 
  • China A50 Futures: Indicating +19 open in China
  • DAX Futures: Indicating +16 open in Germany
Portfolio: 
  • Slightly Lower: On losses in my medical/industrial/retail sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my emerging market shorts
  • Market Exposure: Moved to 50% Net Long

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