Friday, May 29, 2020

Stocks Slightly Lower into Final Hour on China Tensions, Global Recession Fears, European Debt Angst, Energy/Financial Sector Weakness

 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) 29.8 +4.1%
  • Euro/Yen Carry Return Index 124.11 +.39%
  • Emerging Markets Currency Volatility(VXY) 10.86 +.18%
  • S&P 500 Implied Correlation 66.1 +8.1%
  • ISE Sentiment Index 99.0 -22.0 points
  • Total Put/Call .96 +12.9%
  • NYSE Arms 1.55 -28.9%
Credit Investor Angst:
  • North American Investment Grade CDS Index 80.22 +2.7%
  • US Energy High-Yield OAS 1,022.32 +.48%
  • European Financial Sector CDS Index 85.28 +6.83%
  • Italian/German 10Y Yld Spread 192.25 +7.75 basis points
  • Asia Ex-Japan Investment Grade CDS Index 102.08 +1.53%
  • Emerging Market CDS Index 290.25 -.31%
  • iBoxx Offshore RMB China Corporate High Yield Index 165.90 -.32%
  • 2-Year Swap Spread 9.25 +.25 basis point
  • TED Spread 21.75 -2.0 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -10.75 +.75 basis point
  • MBS  5/10 Treasury Spread  116.0 unch.
  • IHS Markit CMBX BBB- 6 66.25 +1.0 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 60.07 +.14%
  • 3-Month T-Bill Yield .13% -1.0 basis point
  • Yield Curve 50.5 -.25 basis point
  • China Iron Ore Spot 96.47 USD/Metric Tonne +.50%
  • Citi US Economic Surprise Index -55.10 +.6 point
  • Citi Eurozone Economic Surprise Index -275.60 +3.4 points
  • Citi Emerging Markets Economic Surprise Index 19.6 +6.4 points
  • 10-Year TIPS Spread 1.17 -1.0 basis point
  • 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 -52 open in Japan 
  • China A50 Futures: Indicating -121 open in China
  • DAX Futures: Indicating +9 open in Germany
Portfolio:
  • Slightly Lower: On losses in my industrial sector longs and emerging market shorts
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 25% Net Long

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