Tuesday, June 02, 2020

Stocks Higher into Final Hour on Global Stimulus Hopes, Oil Gain, Short-Covering, Airline/Energy Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 27.2 -3.5%
  • Euro/Yen Carry Return Index 125.86 +1.35%
  • Emerging Markets Currency Volatility(VXY) 10.36 -3.5%
  • S&P 500 Implied Correlation 61.20 -1.6%
  • ISE Sentiment Index 124.0 +15.0 points
  • Total Put/Call .76 -8.4%
  • NYSE Arms .76 -1.3%
Credit Investor Angst:
  • North American Investment Grade CDS Index 75.88 -3.58%
  • US Energy High-Yield OAS 999.84 -1.68%
  • European Financial Sector CDS Index 78.51 -3.32%
  • Italian/German 10Y Yld Spread 191.75 +2.75 basis points
  • Asia Ex-Japan Investment Grade CDS Index 98.21 -2.86%
  • Emerging Market CDS Index 258.22 -7.8%
  • iBoxx Offshore RMB China Corporate High Yield Index 166.50 +.11%
  • 2-Year Swap Spread 8.25 -.75 basis point
  • TED Spread 21.25 -.75 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -12.75 -2.25 basis points
  • MBS  5/10 Treasury Spread  114.0 unch.
  • IHS Markit CMBX BBB- 6 66.25 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 61.14 +1.13%
  • 3-Month T-Bill Yield .14% +1.0 basis point
  • Yield Curve 49.0 -1.0 basis point
  • China Iron Ore Spot 96.33 USD/Metric Tonne +1.12%
  • Citi US Economic Surprise Index -53.90 +.8 point
  • Citi Eurozone Economic Surprise Index -262.10 +3.6 points
  • Citi Emerging Markets Economic Surprise Index 29.6 +1.1 points
  • 10-Year TIPS Spread 1.16 -2.0 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 +325 open in Japan 
  • China A50 Futures: Indicating -37 open in China
  • DAX Futures: Indicating +2 open in Germany
Portfolio:
  • Slightly Higher: On gains in my industrial/tech/biotech sector longs 
  • Disclosed Trades: None
  • Market Exposure: 50% Net Long

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