Monday, June 01, 2020

Stocks Higher into Final Hour on Global Stimulus Hopes, Economy Re-Opening Optimism, Short-Covering, Airline/REIT Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Below Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 28.4 +3.2%
  • Euro/Yen Carry Return Index 124.15 +.03%
  • Emerging Markets Currency Volatility(VXY) 10.77 -.65%
  • S&P 500 Implied Correlation 62.3 +2.8%
  • ISE Sentiment Index 109.0 +10.0 points
  • Total Put/Call .80 -13.0%
  • NYSE Arms .79 -53.8%
Credit Investor Angst:
  • North American Investment Grade CDS Index 78.4 +.81%
  • US Energy High-Yield OAS 1,021.43 -.51%
  • European Financial Sector CDS Index 81.19 -4.67%
  • Italian/German 10Y Yld Spread 189.0 -3.25 basis points
  • Asia Ex-Japan Investment Grade CDS Index 101.21 -.23%
  • Emerging Market CDS Index 279.97 -3.17%
  • iBoxx Offshore RMB China Corporate High Yield Index 166.32 +.25%
  • 2-Year Swap Spread 9.0 -.25 basis point
  • TED Spread 22.0 +.25 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -10.5 +.25 basis point
  • MBS  5/10 Treasury Spread  114.0 -2.0 basis points
  • IHS Markit CMBX BBB- 6 66.25 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 60.43 +.46%
  • 3-Month T-Bill Yield .13% unch.
  • Yield Curve 50.0 -.5 basis point
  • China Iron Ore Spot 95.40 USD/Metric Tonne -1.92%
  • Citi US Economic Surprise Index -54.70 +.4 point
  • Citi Eurozone Economic Surprise Index -265.70 +9.1 points
  • Citi Emerging Markets Economic Surprise Index 28.5 +8.9 points
  • 10-Year TIPS Spread 1.18 +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 +128 open in Japan 
  • China A50 Futures: Indicating -128 open in China
  • DAX Futures: Indicating +303 open in Germany
Portfolio:
  • Higher: On gains in my industrial/tech/consumer staple sector longs 
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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