Thursday, April 09, 2020

Stocks Higher into Final Hour on Global Stimulus, Coronavirus Hopes, Short-Covering, Financial/Airlines Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Every Sector Rising
  • Volume: Heavy
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 42.5 -1.9%
  • Euro/Yen Carry Return Index 122.04 +.34%
  • Emerging Markets Currency Volatility(VXY) 11.6 -3.1%
  • S&P 500 Implied Correlation 76.90  -.84%
  • ISE Sentiment Index 50.0 -37.0 points
  • Total Put/Call .97 -5.8%
  • NYSE Arms 1.13 +113.0%
Credit Investor Angst:
  • North American Investment Grade CDS Index 86.66 -18.6%
  • America Energy Sector High-Yield CDS Index 1,327.0 +9.36%
  • European Financial Sector CDS Index 93.11 -14.94%
  • Italian/German 10Y Yld Spread 193.75 -2.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 132.60 -3.41%
  • Emerging Market CDS Index 301.17 -11.1%
  • iBoxx Offshore RMB China Corporate High Yield Index 157.34 +.31%
  • 2-Year Swap Spread 23.25 -2.5 basis points
  • TED Spread 110.0 -7.0 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap 38.0 -5.75 basis points
  • MBS  5/10 Treasury Spread  113.0-4.0 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 59.21 +.98%
  • 3-Month T-Bill Yield .19% +1.0 basis point
  • Yield Curve .49 -1.0 basis point
  • China Iron Ore Spot 82.41 USD/Metric Tonne +.81%
  • Citi US Economic Surprise Index -67.7 -25.2 points
  • Citi Eurozone Economic Surprise Index -64.70 +2.9 points
  • Citi Emerging Markets Economic Surprise Index 1.70 +1.3 points
  • 10-Year TIPS Spread 1.24 +5.0 basis points
  • n/a chance of no change at April 29th meeting, n/a chance of no change at June 10th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +245 open in Japan 
  • China A50 Futures: Indicating -3 open in China
  • DAX Futures: Indicating +27 open in Germany
Portfolio:
  • Higher: On gains in my consumer staple/industrial/tech/medical sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added them back
  • Market Exposure: 50% Net Long

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