Monday, May 04, 2020

Stocks Reversing Slightly Higher into Final Hour on Global Stimulus, Economy Re-Opening Hopes, Oil Gain, Energy/Biotech Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Lower
  • Sector Performance: Most Sectors Declining
  • Volume: Around Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 37.3 +.3%
  • Euro/Yen Carry Return Index 120.72 -.8%
  • Emerging Markets Currency Volatility(VXY) 12.1 +2.1%
  • S&P 500 Implied Correlation 76.49 -1.3%
  • ISE Sentiment Index 77.0 +20.0 points
  • Total Put/Call .99 -15.4%
  • NYSE Arms 1.14 -40.3%
Credit Investor Angst:
  • North American Investment Grade CDS Index 90.26 +.53%
  • US Energy High-Yield OAS 1,359.29 +.38%
  • European Financial Sector CDS Index 108.42 +2.50%
  • Italian/German 10Y Yld Spread 233.0 -2.25 basis points
  • Asia Ex-Japan Investment Grade CDS Index 121.30 +3.1%
  • Emerging Market CDS Index 348.15 -.42%
  • iBoxx Offshore RMB China Corporate High Yield Index 163.64 +.02%
  • 2-Year Swap Spread 13.0 unch.
  • TED Spread 44.25 -3.5 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap 4.0 -2.0 basis points
  • MBS  5/10 Treasury Spread  109.0 +4.0 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 58.21 -.17%
  • 3-Month T-Bill Yield .09% unch.
  • Yield Curve 44.0 +1.0 basis point
  • China Iron Ore Spot 80.31 USD/Metric Tonne +.23%
  • Citi US Economic Surprise Index -140.10 -12.1 points
  • Citi Eurozone Economic Surprise Index -267.40 -.4 point
  • Citi Emerging Markets Economic Surprise Index 9.90 +.9 point
  • 10-Year TIPS Spread 1.08 +3.0 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 -260 open in Japan 
  • China A50 Futures: Indicating -660 open in China
  • DAX Futures: Indicating +58 open in Germany
Portfolio:
  • Slightly Higher: On gains in my tech/biotech/consumer staple sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 50% Net Long

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