Thursday, June 10, 2021

Stocks Higher into Afternoon on Lower Long-Term Rates, Earnings Optimism, Technical Buying, Tech/Biotech Sector Strength

Broad Equity Market Tone:

  • Advance/Decline Line: Modestly Lower
  • Sector Performance: Mixed
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 16.5 -8.0%
  • Bloomberg Global Risk On/Risk Off Index 3,354.0 +77.0 points
  • Euro/Yen Carry Return Index 137.64 -.22%
  • Emerging Markets Currency Volatility(VXY) 8.6 -.12%
  • S&P 500 Implied Correlation 47.6 -3.8%
  • ISE Sentiment Index 114.0  -18.0 points
  • Total Put/Call .77 +18.5%
  • NYSE Arms 1.09 -16.2%
Credit Investor Angst:
  • North American Investment Grade CDS Index 49.2 -2.1%
  • US Energy High-Yield OAS 409.28 -.66%
  • European Financial Sector CDS Index 56.0 -1.33%
  • Italian/German 10Y Yld Spread 105.0 -2.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 84.0 +.51%
  • Emerging Market CDS Index 148.68 -1.41%
  • China Corp. High-Yield Bond USD ETF(KCCB) 39.2 unch.
  • 2-Year Swap Spread 6.75 unch.
  • TED Spread 10.75 +.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -3.5 -.25 basis point
  • MBS  5/10 Treasury Spread  69.0 +.25 basis point
  • IHS Markit CMBX BBB- 6 75.25 +.25 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 61.96 +.34%
  • 3-Month T-Bill Yield .02% unch.
  • Yield Curve 132.0 -6.0 basis points
  • China Iron Ore Spot 210.0 USD/Metric Tonne +2.8%
  • Citi US Economic Surprise Index 25.3 +11.5 points
  • Citi Eurozone Economic Surprise Index 131.0 +2.5 points
  • Citi Emerging Markets Economic Surprise Index 64.2 +.2 point
  • 10-Year TIPS Spread 2.35 +1.0 basis point
  • 97.2% chance of no change at Sept. 22nd meeting, 97.2% chance of no change at Nov. 3rd meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +71 open in Japan 
  • China A50 Futures: Indicating -54 open in China
  • DAX Futures: Indicating +15 open in Germany
Portfolio:
  • Higher: On gains in my tech/biotech/medical sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

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