Tuesday, April 03, 2018

Stocks Surging into Final Hour on Economic Optimism, Technical Buying, Yen Weakness, Energy/Transport Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Below Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 21.2 -10.4%
  • Euro/Yen Carry Return Index 136.17 +.37%
  • Emerging Markets Currency Volatility(VXY) 8.23 -.84%
  • S&P 500 Implied Correlation 49.65 -6.5%
  • ISE Sentiment Index 102.0 -4.0%
  • Total Put/Call 1.11 -11.9%
  • NYSE Arms .67 -73.15%
Credit Investor Angst:
  • North American Investment Grade CDS Index 66.70 -1.0%
  • America Energy Sector High-Yield CDS Index 467.0 +2.91%
  • European Financial Sector CDS Index 65.66 -.18%
  • Italian/German 10Y Yld Spread 129.25 +.25 basis point
  • Asia Pacific Sovereign Debt CDS Index 13.29 -2.17%
  • Emerging Market CDS Index 135.71 -5.0%
  • iBoxx Offshore RMB China Corporate High Yield Index 148.55 +.01%
  • 2-Year Swap Spread 31.5 +.25 basis point
  • TED Spread 55.5 -3.75 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -8.25 -2.75 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 75.19 +.03%
  • 3-Month T-Bill Yield 1.74% +2.0 basis points
  • Yield Curve 50.25 +1.25 basis points
  • China Iron Ore Spot 64.14 USD/Metric Tonne +.38%
  • Citi US Economic Surprise Index 46.0 -.1 point
  • Citi Eurozone Economic Surprise Index -60.30 -3.2 points
  • Citi Emerging Markets Economic Surprise Index 28.1 +3.1 points
  • 10-Year TIPS Spread 2.08 +3.0 basis points
  • 79.4% chance of Fed rate hike at June 13 meeting, 80.7% chance at August 1 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +238 open in Japan 
  • China A50 Futures: Indicating +81 open in China
  • DAX Futures: Indicating +46 open in Germany
Portfolio: 
  • Higher: On gains in my retail/industrial/medical/tech sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and my emerging markets shorts
  • Market Exposure: Moved to 100% Net Long

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