North American Investment Grade CDS Index 86.74 bps -1.13%
European Financial Sector CDS Index 73.70 bps -1.76%
Western Europe Sovereign Debt CDS Index 78.67 bps -1.26%
Emerging Market CDS Index 223.49 bps -3.41%
2-Year Swap Spread 16.0 bps -1.0 bp
TED Spread 14.0 unch.
Economic Gauges:
3-Month T-Bill Yield .15% unch.
Yield Curve 281.0 bps -1 bp
China Import Iron Ore Spot $156.30/Metric Tonne +.84%
Citi US Economic Surprise Index +40.10 +6.3 points
10-Year TIPS Spread 2.27% +1 bp
Overseas Futures:
Nikkei Futures: Indicating +121 open in Japan
DAX Futures: Indicating -16 open in Germany
Portfolio:
Slightly Higher: On gains in my Financial, Biotech and Tech long positions
Disclosed Trades: None
Market Exposure: 75% Net Long
BOTTOM LINE: Today's overall market action is mildly bullish as stocks reversed sharply lower from morning highs, but the bears have thus far failed to gain meaningful downside traction. On the positive side, Steel, Oil Tanker, Gold, Oil Service stocks are especially strong, rising 2.0%+. The pullback in cds is a large positive. Cyclicals are outperforming, however the Transports aren't participating today. On the negative side, Wireless, Education, Software and Internet shares are falling .50%+ on the day. The AAII % Bulls surged to 41.3 this week, while the % Bears fell to 31.16, which is a negative. Oil continues to trade well and could become a huge equity market negative into the summer. The bears are once again failing to gain the upper hand despite mounting headwinds and the market's overbought technical condition. However, the broad market and some key stocks are beginning to trade a bit tired as much of the positive news is priced in around current levels. I expect US stocks to trade mixed-to-higher into the close from current levels on short-covering and less economic fear.
No comments:
Post a Comment