Tuesday, March 17, 2020

Stocks Surging into Final Hour on Global Stimulus, Bargain-Hunting, Yen Weakness, Consumer Staple/Tech Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Heavy
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 73.7 -10.8%
  • Euro/Yen Carry Return Index 122.58 -.19%
  • Emerging Markets Currency Volatility(VXY) 13.2 unch.
  • S&P 500 Implied Correlation 85.8 +6.4%
  • ISE Sentiment Index 61.0 -12
  • Total Put/Call 1.03 -18.9%
  • NYSE Arms .78 -23.5%
Credit Investor Angst:
  • North American Investment Grade CDS Index 123.12 -1.63%
  • America Energy Sector High-Yield CDS Index 1,467.0 +8.05%
  • European Financial Sector CDS Index 143.72 -.35%
  • Italian/German 10Y Yld Spread 279.0 +25.75 basis points
  • Asia Ex-Japan Investment Grade CDS Index 141.07 -1.08%
  • Emerging Market CDS Index 396.01 -5.39%
  • iBoxx Offshore RMB China Corporate High Yield Index 170.97 +.05%
  • 2-Year Swap Spread 10.25 +2.0 basis points
  • TED Spread 62.75 +2.75 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -46.0 -35.0 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 59.62 -.53%
  • 3-Month T-Bill Yield .17% -2.0 basis points
  • Yield Curve .38 -2.0 basis points
  • China Iron Ore Spot 88.10 USD/Metric Tonne +4.28%
  • Citi US Economic Surprise Index 57.60 -4.1 points
  • Citi Eurozone Economic Surprise Index 3.1 -11.1 point
  • Citi Emerging Markets Economic Surprise Index -40.0 +1.2 points
  • 10-Year TIPS Spread .64 -9.0 basis points
  • n/a chance of 100.0 basis point Fed rate cut at April 29th meeting, n/a chance of 100.0 basis point cut at June 10th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +404 open in Japan 
  • China A50 Futures: Indicating -4 open in China
  • DAX Futures: Indicating +30 open in Germany
Portfolio:
  • Higher: On gains in my consumer staple, biotech, tech sector longs
  • Disclosed Trades: Covered some of my index hedges and emerging market shorts
  • Market Exposure: Moved to 50% Net Long

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