Friday, May 22, 2020

Stocks Reversing Higher into Afternoon on Vaccine Hopes, Short-Covering, Technical Buying, Telecom/Homebuilding Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Lower
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 28.9 -2.1%
  • Euro/Yen Carry Return Index 121.57 -.5%
  • Emerging Markets Currency Volatility(VXY) 10.95 +2.8%
  • S&P 500 Implied Correlation 65.4 -1.8%
  • ISE Sentiment Index 97.0 +29.0 points
  • Total Put/Call .85 unch.
  • NYSE Arms 1.27 +10.4%
Credit Investor Angst:
  • North American Investment Grade CDS Index 86.95 +1.6%
  • US Energy High-Yield OAS 1,065.41 -1.71%
  • European Financial Sector CDS Index 94.61 +.28%
  • Italian/German 10Y Yld Spread 208.50 -2.5 basis point
  • Asia Ex-Japan Investment Grade CDS Index 107.43 +.86%
  • Emerging Market CDS Index 311.01 +2.28%
  • iBoxx Offshore RMB China Corporate High Yield Index 166.77 +.04%
  • 2-Year Swap Spread 9.5 +.75 basis point
  • TED Spread 24.75 -1.75 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -8.50 +.5 basis point
  • MBS  5/10 Treasury Spread  108.0 +2.0 basis points
  • IHS Markit CMBX BBB- 6 63.50 -.5 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 59.35 -.36%
  • 3-Month T-Bill Yield .11% unch.
  • Yield Curve 48.5 -.5 basis point
  • China Iron Ore Spot 94.52 USD/Metric Tonne -.31%
  • Citi US Economic Surprise Index -81.20 +.3 point
  • Citi Eurozone Economic Surprise Index -251.60 +.5 point
  • Citi Emerging Markets Economic Surprise Index -1.10 -.8 point
  • 10-Year TIPS Spread 1.11 -2.0 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 +157 open in Japan 
  • China A50 Futures: Indicating +29 open in China
  • DAX Futures: Indicating +40 open in Germany
Portfolio:
  • Higher: On gains in my biotech/tech/medical/consumer staple sector longs and emerging market shorts
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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