Thursday, June 03, 2021

Stocks Lower into Final Hour on Inflation Worries, Less Dovish Fed Commentary, Dollar Strength, Tech/Homebuilding Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Slightly Higher
  • Sector Performance: Mixed
  • Volume: Above Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 17.9 +26%
  • Bloomberg Global Risk On/Risk Off Index 3,456.0 -4.0 points
  • Euro/Yen Carry Return Index 138.20 -.04%
  • Emerging Markets Currency Volatility(VXY) 9.04 -.44%
  • S&P 500 Implied Correlation 50.7 +.2%
  • ISE Sentiment Index 152.0  -18.0 points
  • Total Put/Call .61 -11.6%
  • NYSE Arms .50 -24.24%
Credit Investor Angst:
  • North American Investment Grade CDS Index 50.84 +1.46%
  • US Energy High-Yield OAS 419.32 -.98%
  • European Financial Sector CDS Index 58.3 +1.7%
  • Italian/German 10Y Yld Spread 108.0 unch.
  • Asia Ex-Japan Investment Grade CDS Index 87.28 +1.20%
  • Emerging Market CDS Index 160.46 +2.3%
  • China Corp. High-Yield Bond USD ETF(KCCB) 39.29 -.09%
  • 2-Year Swap Spread 8.0 -.25 basis point
  • TED Spread 11.25 -.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -2.5 +.25 basis point
  • MBS  5/10 Treasury Spread  64.75 unch.
  • IHS Markit CMBX BBB- 6 72.5 +.5 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 61.33 -.57%
  • 3-Month T-Bill Yield .02% +1.0 basis point
  • Yield Curve 144.0 -2.0 basis points
  • China Iron Ore Spot 196.50 USD/Metric Tonne unch.
  • Citi US Economic Surprise Index 13.3 +4.1 points
  • Citi Eurozone Economic Surprise Index 152.3 +1.3 points
  • Citi Emerging Markets Economic Surprise Index 59.50 unch.
  • 10-Year TIPS Spread 2.45 -1.0 basis point
  • 93.0% chance of no change at Sept. 22nd meeting, 93.0% chance of no change at Nov. 3rd meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -66 open in Japan 
  • China A50 Futures: Indicating -109 open in China
  • DAX Futures: Indicating -3 open in Germany
Portfolio:
  • Slightly Lower: On losses in my technology/industrial sector longs
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

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