Monday, July 06, 2020

Stocks Higher into Final Hour on Global Stimulus Hopes, Technical Buying, Short-Covering, Financial/Tech Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 28.03 +1.3%
  • Euro/Yen Carry Return Index 125.96 +.51%
  • Emerging Markets Currency Volatility(VXY) 9.98 +.71%
  • S&P 500 Implied Correlation 62.4 -.05%
  • ISE Sentiment Index 112.0 +14.0 points
  • Total Put/Call .68 -20.0%
  • NYSE Arms .77 -9.4%
Credit Investor Angst:
  • North American Investment Grade CDS Index 72.15 -2.62%
  • US Energy High-Yield OAS 965.72 -1.32%
  • European Financial Sector CDS Index 71.66 -5.0%
  • Italian/German 10Y Yld Spread 164.5 -13.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 79.89 -1.39%
  • Emerging Market CDS Index 175.91 +.74%
  • iBoxx Offshore RMB China Corporate High Yield Index 169.88 +.12%
  • 2-Year Swap Spread 6.25 -1.0 basis point
  • TED Spread 14.0 -2.5 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -8.75 -2.0 basis points
  • MBS  5/10 Treasury Spread  104.0 -4.0 basis points
  • IHS Markit CMBX BBB- 6 69.0 -1.5 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 60.61 +.12%
  • 3-Month T-Bill Yield .14% unch.
  • Yield Curve 53.75 +2.75 basis points
  • China Iron Ore Spot 99.10 USD/Metric Tonne +1.6%
  • Citi US Economic Surprise Index 213.60 +25.7 points
  • Citi Eurozone Economic Surprise Index -46.70 +19.2 points
  • Citi Emerging Markets Economic Surprise Index -22.60 -1.5 points
  • 10-Year TIPS Spread 1.45 +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 -94 open in Japan 
  • China A50 Futures: Indicating +205 open in China
  • DAX Futures: Indicating -40 open in Germany
Portfolio:
  • Higher: On gains in my tech/medical/biotech/industrial sector longs
  • Disclosed Trades: None
  • Market Exposure: 50% Net Long

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