Monday, June 08, 2020

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

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Heavy
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 25.2 +2.6%
  • Euro/Yen Carry Return Index 127.0 -1.0%
  • Emerging Markets Currency Volatility(VXY) 9.47 -.11%
  • S&P 500 Implied Correlation 57.6 -6.1%
  • ISE Sentiment Index 126.0 -19.0 points
  • Total Put/Call .60 -7.7%
  • NYSE Arms .45 -22.4%
Credit Investor Angst:
  • North American Investment Grade CDS Index 66.54 +1.3%
  • US Energy High-Yield OAS 876.26 -1.31%
  • European Financial Sector CDS Index 69.57 +3.55%
  • Italian/German 10Y Yld Spread 172.25 +3.25 basis points
  • Asia Ex-Japan Investment Grade CDS Index 81.75 -6.3%
  • Emerging Market CDS Index 225.91 +.43%
  • iBoxx Offshore RMB China Corporate High Yield Index 169.19 +.04%
  • 2-Year Swap Spread 7.75 unch.
  • TED Spread 16.5 -.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -14.0 unch.
  • MBS  5/10 Treasury Spread  108.0 -1.0 basis point
  • IHS Markit CMBX BBB- 6 72.25 +3.0 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 61.90 +.16%
  • 3-Month T-Bill Yield .16% +1.0 basis point
  • Yield Curve 65.0 +2.25 basis points
  • China Iron Ore Spot 101.60 USD/Metric Tonne +.54%
  • Citi US Economic Surprise Index 69.70 +3.4 points
  • Citi Eurozone Economic Surprise Index -214.60 +.6 point
  • Citi Emerging Markets Economic Surprise Index 41.7 +.3 point
  • 10-Year TIPS Spread 1.27 +1.0 basis point
  • 92.1% chance of no change at July 29th meeting, 92.1% chance of no change at Sept. 16th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -23 open in Japan 
  • China A50 Futures: Indicating -97 open in China
  • DAX Futures: Indicating +35 open in Germany
Portfolio:
  • Higher: On gains in my biotech/tech/medical/industrial/consumer staple sector longs 
  • Disclosed Trades: None
  • Market Exposure: 75% Net Long

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