Wednesday, April 08, 2020

Stocks Surging into Final Hour on Peak Coronavirus Hopes, Oil Gain, Short-Covering, Gaming/Homebuilding Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Above Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 43.4 -7.0%
  • Euro/Yen Carry Return Index 122.63 -.3%
  • Emerging Markets Currency Volatility(VXY) 12.2 +.33%
  • S&P 500 Implied Correlation 75.8 -4.8%
  • ISE Sentiment Index 87.0 -14.0 points
  • Total Put/Call 1.05 +9.4%
  • NYSE Arms .90 -23.1%
Credit Investor Angst:
  • North American Investment Grade CDS Index 105.02 -7.3%
  • America Energy Sector High-Yield CDS Index 1,219.0 -1.31%
  • European Financial Sector CDS Index 109.46 -1.31%
  • Italian/German 10Y Yld Spread 195.75 +3.25 basis points
  • Asia Ex-Japan Investment Grade CDS Index 137.64 +.02%
  • Emerging Market CDS Index 339.44 -1.68%
  • iBoxx Offshore RMB China Corporate High Yield Index 156.85 +.79%
  • 2-Year Swap Spread 25.75 +.75 basis point
  • TED Spread 117.0 -11.0 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap 43.75 -3.25 basis points
  • MBS  5/10 Treasury Spread  117.0 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 58.62 +.21%
  • 3-Month T-Bill Yield .18% +8.0 basis points
  • Yield Curve .50 +4.0 basis points
  • China Iron Ore Spot 80.20 USD/Metric Tonne +1.74%
  • Citi US Economic Surprise Index -42.9 n/a
  • Citi Eurozone Economic Surprise Index -67.60 n/a
  • Citi Emerging Markets Economic Surprise Index .4 n/a
  • 10-Year TIPS Spread 1.19 +2.0 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 -8 open in Japan 
  • China A50 Futures: Indicating +19 open in China
  • DAX Futures: Indicating +25 open in Germany
Portfolio:
  • Higher: On gains in my consumer staple/industrial/tech/medical/biotech sector long
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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