Monday, April 27, 2020

Stocks Surging into Final Hour on Global Stimulus Hopes, Diminishing Coronavirus Fears, Short-Covering, Retail/Financial Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Every Sector Rising
  • Volume: Above Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 33.2 -7.7%
  • Euro/Yen Carry Return Index 120.48 -.20%
  • Emerging Markets Currency Volatility(VXY) 11.99 -1.7%
  • S&P 500 Implied Correlation 68.7 -5.3%
  • ISE Sentiment Index 72.0 +1.0 point
  • Total Put/Call 1.03 +1.98%
  • NYSE Arms .75 -31.2%
Credit Investor Angst:
  • North American Investment Grade CDS Index 92.06 -1.84%
  • America Energy Sector High-Yield CDS Index 882.0 unch.
  • European Financial Sector CDS Index 102.27 -7.01%
  • Italian/German 10Y Yld Spread 221.25 -10.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 122.0 -1.39%
  • Emerging Market CDS Index 366.69 unch.
  • iBoxx Offshore RMB China Corporate High Yield Index 164.67 -.35%
  • 2-Year Swap Spread 15.5 -1.0 basis point
  • TED Spread 79.0 -13.0 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap 22.25 -8.25 basis points
  • MBS  5/10 Treasury Spread  123.0 -6.0 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 57.70 -.02%
  • 3-Month T-Bill Yield .10% unch.
  • Yield Curve 39.75 +2.75 basis points
  • China Iron Ore Spot 81.08 USD/Metric Tonne -.31%
  • Citi US Economic Surprise Index -103.70 -1.9 points
  • Citi Eurozone Economic Surprise Index -213.90 +6.2 points
  • Citi Emerging Markets Economic Surprise Index 4.4 +4.6 points
  • 10-Year TIPS Spread 1.17 +6.0 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 +72 open in Japan 
  • China A50 Futures: Indicating +67 open in China
  • DAX Futures: Indicating +17 open in Germany
Portfolio:
  • Higher: On gains in my biotech/tech/industrial/medical sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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