Tuesday, June 16, 2020

Stocks Higher into Final Hour on Global Stimulus Hopes, US Economic Data Bounce, Positive Coronavirus Study Results, Tech/Energy Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 34.3 -.2%
  • Euro/Yen Carry Return Index 125.36 -.52%
  • Emerging Markets Currency Volatility(VXY) 10.7 +3.9%
  • S&P 500 Implied Correlation 66.2 +2.4%
  • ISE Sentiment Index 95.0 +27.0 points
  • Total Put/Call .77 -12.5%
  • NYSE Arms 1.09 +11.2%
Credit Investor Angst:
  • North American Investment Grade CDS Index 68.0 -4.26%
  • US Energy High-Yield OAS 927.79 -3.38%
  • European Financial Sector CDS Index 75.02 -8.0%
  • Italian/German 10Y Yld Spread 182.5 -8.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 85.18 -8.7%
  • Emerging Market CDS Index 187.59 -10.48%
  • iBoxx Offshore RMB China Corporate High Yield Index 169.35 +.03%
  • 2-Year Swap Spread 7.0 +.25 basis point
  • TED Spread 15.75 -1.25 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -14.0 +5.0 basis points
  • MBS  5/10 Treasury Spread  111.0 unch.
  • IHS Markit CMBX BBB- 6 70.0 -1.0 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 60.82 -.2%
  • 3-Month T-Bill Yield .16% unch.
  • Yield Curve 56.5 +8.0 basis points
  • China Iron Ore Spot 101.5 USD/Metric Tonne +.23%
  • Citi US Economic Surprise Index 119.30 +17.8 points
  • Citi Eurozone Economic Surprise Index -200.10 +3.8 points
  • Citi Emerging Markets Economic Surprise Index .6 -14.4 points
  • 10-Year TIPS Spread 1.27 +5.0 basis points
  • 100.0% chance of no change at Sept. 16 meeting, 100.0% chance of no change at Nov. 5th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -205 open in Japan 
  • China A50 Futures: Indicating -134 open in China
  • DAX Futures: Indicating -18 open in Germany
Portfolio:
  • Higher: On gains in my medical/tech/biotech/consumer staple/industrial sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 50% Net Long

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