Friday, May 08, 2020

Stocks Higher into Final Hour on Economy Re-Opening Optimism, Oil Gain, Short-Covering, Energy/Retail Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 29.2 -7.3%
  • Euro/Yen Carry Return Index 119.84 +.44%
  • Emerging Markets Currency Volatility(VXY) 11.81 -1.83%
  • S&P 500 Implied Correlation 69.10 -4.19%
  • ISE Sentiment Index 97.0 -18.0 points
  • Total Put/Call .86 +4.9%
  • NYSE Arms .88 -17.0%
Credit Investor Angst:
  • North American Investment Grade CDS Index 92.0 -.38%
  • US Energy High-Yield OAS 1,270.72 -.65%
  • European Financial Sector CDS Index 106.85 +.06%
  • Italian/German 10Y Yld Spread 238.25 -8.25 basis points
  • Asia Ex-Japan Investment Grade CDS Index 118.25 -1.34%
  • Emerging Market CDS Index 333.01 -2.63%
  • iBoxx Offshore RMB China Corporate High Yield Index 164.01 +.02%
  • 2-Year Swap Spread 10.5 -1.0 basis point
  • TED Spread 33.5 -3.75 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -6.5 -.75 basis point
  • MBS  5/10 Treasury Spread  109.0 -8.0 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 58.28 +.51%
  • 3-Month T-Bill Yield .10% unch.
  • Yield Curve 51.0 -.75 basis point
  • China Iron Ore Spot 85.25 USD/Metric Tonne -.42%
  • Citi US Economic Surprise Index -54.80 +50.5 points
  • Citi Eurozone Economic Surprise Index -300.10 -6.7 points
  • Citi Emerging Markets Economic Surprise Index 10.90 unch.
  • 10-Year TIPS Spread 1.12 +4.0 basis points
  • 99.3% chance of no change at July 29th meeting, 99.3% chance of no change at Sept. 16th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -14 open in Japan 
  • China A50 Futures: Indicating -51 open in China
  • DAX Futures: Indicating -21 open in Germany
Portfolio:
  • Higher: On gains in my tech/biotech/medical/industrial/consumer staple sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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