Tuesday, April 14, 2020

Stocks Surging into Final Hour on Diminishing Coronavirus Fears, Short-Covering, Technical Buying, Tech/Biotech 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) 37.8 -8.3%
  • Euro/Yen Carry Return Index 121.98 +.03%
  • Emerging Markets Currency Volatility(VXY) 11.15 -1.85%
  • S&P 500 Implied Correlation 71.66 -7.5%
  • ISE Sentiment Index 46.0 -127.0 points
  • Total Put/Call 1.0 +9.89%
  • NYSE Arms 2.0 +96.1%
Credit Investor Angst:
  • North American Investment Grade CDS Index 80.73 -3.16%
  • America Energy Sector High-Yield CDS Index 1,110.0 -3.24%
  • European Financial Sector CDS Index 93.94 +.67%
  • Italian/German 10Y Yld Spread 216.25 +24.25 basis points
  • Asia Ex-Japan Investment Grade CDS Index 116.69 -5.18%
  • Emerging Market CDS Index 313.20 +1.94%
  • iBoxx Offshore RMB China Corporate High Yield Index 158.26 +.49%
  • 2-Year Swap Spread 21.0 -1.0 basis points
  • TED Spread 105.0 +2.5 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap 46.75 +9.5 basis points
  • MBS  5/10 Treasury Spread  124.0 +3.0 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 59.04 +.11%
  • 3-Month T-Bill Yield .16% -4.0 basis points
  • Yield Curve 51.25 +2.25 basis points
  • China Iron Ore Spot 83.95 USD/Metric Tonne +.45%
  • Citi US Economic Surprise Index -84.1 -2.3 points
  • Citi Eurozone Economic Surprise Index -61.60 -.2 point
  • Citi Emerging Markets Economic Surprise Index 12.0 +2.4 points
  • 10-Year TIPS Spread 1.29 +3.0 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 -44 open in Japan 
  • China A50 Futures: Indicating -119 open in China
  • DAX Futures: Indicating +2 open in Germany
Portfolio:
  • Higher: On gains in my consumer staple/tech/biotech/medical/industrial sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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