Wednesday, April 22, 2020

Stocks Surging into Final Hour on Global Stimulus Hopes, Diminishing Coronavirus Fears, Oil Bounce, Tech/Energy Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Around Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 41.6 -8.4%
  • Euro/Yen Carry Return Index 120.86 -.43%
  • Emerging Markets Currency Volatility(VXY) 11.74 +.77%
  • S&P 500 Implied Correlation 76.30 -6.3%
  • ISE Sentiment Index 137.0 +85.0 points
  • Total Put/Call .98 -10.9%
  • NYSE Arms 1.15 +.88%
Credit Investor Angst:
  • North American Investment Grade CDS Index 94.80 -2.5%
  • America Energy Sector High-Yield CDS Index 1,115.0 -15.8%
  • European Financial Sector CDS Index 107.91 -6.68%
  • Italian/German 10Y Yld Spread 248.5 -14.75 basis points
  • Asia Ex-Japan Investment Grade CDS Index 124.16 +1.82%
  • Emerging Market CDS Index 353.09 -2.65%
  • iBoxx Offshore RMB China Corporate High Yield Index 166.24 +.08%
  • 2-Year Swap Spread 19.75 -.75 basis point
  • TED Spread 101.0 -2.0 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap 36.0 -2.5 basis points
  • MBS  5/10 Treasury Spread  130.0 -9.0 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 57.77 -.09%
  • 3-Month T-Bill Yield .10% +2.0 basis points
  • Yield Curve 36.0 -4.0 basis points
  • China Iron Ore Spot 82.50 USD/Metric Tonne +.34%
  • Citi US Economic Surprise Index -133.10 unch.
  • Citi Eurozone Economic Surprise Index -31.90 -.4 point
  • Citi Emerging Markets Economic Surprise Index -7.80 -1.1 points
  • 10-Year TIPS Spread 1.06 +10.0 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 +212 open in Japan 
  • China A50 Futures: Indicating -20 open in China
  • DAX Futures: Indicating +13 open in Germany
Portfolio:
  • Slightly Higher: On gains in my biotech/tech/industrial/medical/consumer staple sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 50% Net Long

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