Friday, May 26, 2017

Stocks Slightly Higher into Final Hour on Less European/Emerging Markets/US High-Yield Debt Angst, Oil Gain, Short-Covering, Road & Rail/Networking Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Lower
  • Sector Performance: Mixed
  • Volume: Light
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 9.80 -1.9%
  • Euro/Yen Carry Return Index 129.72 -.87%
  • Emerging Markets Currency Volatility(VXY) 8.08 -1.58%
  • S&P 500 Implied Correlation 39.66 +2.91%
  • ISE Sentiment Index 128.0 +50.59%
  • Total Put/Call .90 +7.14%
  • NYSE Arms .87 -37.87%
Credit Investor Angst:
  • North American Investment Grade CDS Index 62.61 +.21%
  • America Energy Sector High-Yield CDS Index 370.0 +2.65%
  • European Financial Sector CDS Index 66.63 +.58%
  • Western Europe Sovereign Debt CDS Index 8.68 +6.7%
  • Asia Pacific Sovereign Debt CDS Index 19.38 +.08%
  • Emerging Market CDS Index 192.10 -1.16%
  • iBoxx Offshore RMB China Corporate High Yield Index 138.59 +.05%
  • 2-Year Swap Spread 23.50 -.5 basis point
  • TED Spread 27.50 +.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -35.0 -1.25 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 73.10 +.03%
  • 3-Month T-Bill Yield .92% unch.
  • Yield Curve 95.0 -1.0 basis point
  • China Import Iron Ore Spot $57.91/Metric Tonne -3.87%
  • Citi US Economic Surprise Index -36.20 +1.8 point
  • Citi Eurozone Economic Surprise Index 56.0 -4.3 points
  • Citi Emerging Markets Economic Surprise Index 19.70 -.1 point
  • 10-Year TIPS Spread 1.83 +1.0 basis point
  • 93.4% chance of Fed rate hike at July 26 meeting, 95.5% chance at Sept. 20 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -6 open in Japan 
  • China A50 Futures: Indicating -7 open in China
  • DAX Futures: Indicating -13 open in Germany
Portfolio: 
  • Slightly Higher: On gains in my medical/tech sector longs 
  • Disclosed Trades: None
  • Market Exposure: 75% Net Long

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