Friday, May 10, 2019

Stocks Reversing Slightly Higher into Final Hour on Diminishing China Trade Deal Worries, Short-Covering, Technical Buying, Utility/Steel Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Lower
  • Sector Performance: Mixed
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 16.81 -12.0%
  • Euro/Yen Carry Return Index 128.23 +.27%
  • Emerging Markets Currency Volatility(VXY) 8.80 -5.27%
  • S&P 500 Implied Correlation 38.65 -3.7%
  • ISE Sentiment Index 64.0 +4.9%
  • Total Put/Call 1.27 -.78%
  • NYSE Arms .91 -23.5%
Credit Investor Angst:
  • North American Investment Grade CDS Index 61.97 -1.41%
  • America Energy Sector High-Yield CDS Index 460.0 +2.09%
  • European Financial Sector CDS Index 79.10 -.47%
  • Italian/German 10Y Yld Spread 272.75 -.25 basis point
  • Asia Ex-Japan Investment Grade CDS Index 70.20 -.72%
  • Emerging Market CDS Index 198.55 -1.57%
  • iBoxx Offshore RMB China Corporate High Yield Index 162.68 +.03%
  • 2-Year Swap Spread 10.0 unch.
  • TED Spread 13.25 -1.25 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -17.0 +.25 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 66.34 +.51%
  • 3-Month T-Bill Yield 2.42% +1.0 basis point
  • Yield Curve 20.50 +2.0 basis points
  • China Iron Ore Spot 94.15 USD/Metric Tonne +4.1%
  • Citi US Economic Surprise Index -47.70 -4.8 points
  • Citi Eurozone Economic Surprise Index -16.70 +.2 point
  • Citi Emerging Markets Economic Surprise Index -19.30 -1.6 points
  • 10-Year TIPS Spread 1.87 +1.0 basis point
  • 15.7% chance of Fed rate cut at July 31st meeting, 36.1% chance of cut at Sept. 18th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +41 open in Japan 
  • China A50 Futures: Indicating -231 open in China
  • DAX Futures: Indicating +92 open in Germany
Portfolio:
  • Slightly Lower: On losses in my retail/industrial/biotech/medical sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: 75% Net Long

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