Friday, April 23, 2021

Stocks Surging into Afternoon on US Economic Optimism, Dollar Weakness, Oil Gain, Financial/Tech Sector Strength

Broad Equity Market Tone:

  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Light
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 17.0 -9.0%
  • Bloomberg Global Risk On/Risk Off Index 3,193.0 +170.0 points
  • Euro/Yen Carry Return Index 134.78 +.57%
  • Emerging Markets Currency Volatility(VXY) 9.9 -1.1%
  • S&P 500 Implied Correlation 50.0 +1.0%
  • ISE Sentiment Index 117.0 -18.0 points
  • Total Put/Call .77 -3.8%
  • NYSE Arms .95 -12.8%
Credit Investor Angst:
  • North American Investment Grade CDS Index 51.27 -1.28%
  • US Energy High-Yield OAS 452.90 -.94%
  • European Financial Sector CDS Index 59.29 -1.6%
  • Italian/German 10Y Yld Spread 104.0 +2.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 81.25 +2.25%
  • Emerging Market CDS Index 165.14 -1.11%
  • China Corp. High-Yield Bond USD ETF(KCCB) 39.23 +.1%.
  • 2-Year Swap Spread 12.0 -.25 basis point
  • TED Spread 16.0 -.75 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -3.75 +.25 basis point
  • MBS  5/10 Treasury Spread  64.75 +.5 basis point
  • IHS Markit CMBX BBB- 6 71.5 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 60.82 unch.
  • 3-Month T-Bill Yield .02% unch.
  • Yield Curve 141.0 +2.0 basis points
  • China Iron Ore Spot 183.6 USD/Metric Tonne +1.4%
  • Citi US Economic Surprise Index 43.80 +15.5 points
  • Citi Eurozone Economic Surprise Index 144.5 +12.5 points
  • Citi Emerging Markets Economic Surprise Index 40.4 +2.3 points
  • 10-Year TIPS Spread 2.34 +1.0 basis point
  • 89.4% chance of no change at June 16th meeting, 89.4% chance of no change at Sept. 22nd meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +160 open in Japan 
  • China A50 Futures: Indicating +77 open in China
  • DAX Futures: Indicating +23 open in Germany
Portfolio:
  • Higher: On gains in my tech/energy/biotech/medical/industrial sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

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