Tuesday, May 26, 2020

Stocks Sharply Higher into Final Hour on Vaccine Hopes, Economy Re-Opening Optimism, Short-Covering, Transport/Financial Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Above Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 27.3 -2.9%
  • Euro/Yen Carry Return Index 122.54 +.68%
  • Emerging Markets Currency Volatility(VXY) 10.6 -3.7%
  • S&P 500 Implied Correlation 61.5 -6.0%
  • ISE Sentiment Index 89.0 -8.0 points
  • Total Put/Call .76 -7.3%
  • NYSE Arms .83 -41.6%
Credit Investor Angst:
  • North American Investment Grade CDS Index 82.29 -5.89%
  • US Energy High-Yield OAS 1,052.0 -1.23%
  • European Financial Sector CDS Index 85.65 -9.39%
  • Italian/German 10Y Yld Spread 190.0 -10.5 basis point
  • Asia Ex-Japan Investment Grade CDS Index 104.14 -2.9%
  • Emerging Market CDS Index 287.42 -7.59%
  • iBoxx Offshore RMB China Corporate High Yield Index 165.65 -.02%
  • 2-Year Swap Spread 9.0 -.5 basis point
  • TED Spread 25.0 +.25 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -9.0 -.5 basis point
  • MBS  5/10 Treasury Spread  113.0 +5.0 basis points
  • IHS Markit CMBX BBB- 6 64.0 +.5 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 60.07 +.99%
  • 3-Month T-Bill Yield .12% +1.0 basis point
  • Yield Curve 49.0 +.5 basis point
  • China Iron Ore Spot 91.72 USD/Metric Tonne -3.62%
  • Citi US Economic Surprise Index -79.20 +2.0 points
  • Citi Eurozone Economic Surprise Index -246.30 +5.3 points
  • Citi Emerging Markets Economic Surprise Index 9.9 +11.0 points
  • 10-Year TIPS Spread 1.14 +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 +79 open in Japan 
  • China A50 Futures: Indicating +6 open in China
  • DAX Futures: Indicating -3 open in Germany
Portfolio:
  • Slightly Higher: On gains in my tech/medical/consumer staple/industrial sector longs
  • Disclosed Trades: None
  • Market Exposure: 50% Net Long

No comments: