Friday, March 14, 2025

Stocks Surging into Final Hour on Diminished US Govt Shutdown Fears, Short-Covering, Technical Buying, Tech/Financial Sector Strength

Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 37.48 +.25%
  • 3-Month T-Bill Yield 4.29% -1.0 basis point
  • China Iron Ore Spot 102.3 USD/Metric Tonne -1.7%
  • Dutch TTF Nat Gas(European benchmark) 42.3 euros/megawatt-hour +.5%
  • Citi US Economic Surprise Index -9.7 -3.5 points
  • Citi Eurozone Economic Surprise Index 23.5 +.4 point
  • Citi Emerging Markets Economic Surprise Index 2.8 -.2 point
  • S&P 500 Current Quarter EPS Growth Rate YoY(498 of 500 reporting) +13.1% -.1 percentage point
  • S&P 500 Blended Forward 12 Months Mean EPS Estimate 277.35 +.04:  Growth Rate +12.6% unch., P/E 20.3 +.3
  • S&P 500 Current Year Estimated Profit Margin 13.57% unch.
  • NYSE FANG+ Current Quarter EPS Growth Rate YoY(10 of 10 reporting) +32.1% unch.
  • NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 411.13 +.20: Growth Rate +18.9% +.1 percentage point, P/E 29.2 +.6
  • Bloomberg US Financial Conditions Index .02 -10.0 basis points
  • Bloomberg Euro-Zone Financial Conditions Index 1.21 -4.0 basis points
  • US Yield Curve 29.0 basis points (2s/10s) -3.5 basis points
  • US Atlanta Fed GDPNow Q1 Forecast -2.41% unch.
  • US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 34.8% unch.
  • Cleveland Fed Inflation Nowcast Core PCE YoY +2.60% unch.: CPI YoY +2.46% unch.
  • 10-Year TIPS Spread 2.31 unch.
  • Highest target rate probability for May 7th FOMC meeting: 70.5% (+6.0 percentage points) chance of 4.25%-4.5%. Highest target rate probability for June 18th meeting: 57.3%(+1.1 percentage points) chance of 4.0%-4.25%. (current target rate is 4.25-4.5%)
Overseas Futures:
  • Nikkei 225 Futures: Indicating +382 open in Japan 
  • China A50 Futures: Indicating +125 open in China
  • DAX Futures: Indicating +85 open in Germany
Portfolio:
  • Higher: On gains in my financial/consumer discretionary/tech/utility/industrial sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my emerging market shorts
  • Market Exposure: Moved to 100% Net Long

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