Monday, June 04, 2018

Stocks Rising into Final Hour on Economic Optimism, Less European Debt Angst, Technical Buying, Tech/Retail Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 12.95 -3.8%
  • Euro/Yen Carry Return Index 133.57 +.47%
  • Emerging Markets Currency Volatility(VXY) 9.19 +2.64%
  • S&P 500 Implied Correlation 35.94 -10.4%
  • ISE Sentiment Index 124.0 +51.2%
  • Total Put/Call .78 -8.24%
  • NYSE Arms 1.04 -6.9%
Credit Investor Angst:
  • North American Investment Grade CDS Index 64.17 -2.17%
  • America Energy Sector High-Yield CDS Index 378.0 -.08%
  • European Financial Sector CDS Index 74.27 -6.9%
  • Italian/German 10Y Yld Spread 212.0 -18.0 basis points
  • Asia Pacific Sovereign Debt CDS Index 12.83 +4.61%
  • Emerging Market CDS Index 169.46 -1.9%
  • iBoxx Offshore RMB China Corporate High Yield Index 150.03 +.06%
  • 2-Year Swap Spread 26.25 +.75 basis point
  • TED Spread 40.75 -.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -10.75 -2.0 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 71.15 +.38%
  • 3-Month T-Bill Yield 1.90% unch.
  • Yield Curve 43.0 +.5 basis point
  • China Iron Ore Spot 64.55 USD/Metric Tonne -.05%
  • Citi US Economic Surprise Index 9.70 -4.8 points
  • Citi Eurozone Economic Surprise Index -89.80 +1.2 points
  • Citi Emerging Markets Economic Surprise Index -12.70 -6.1 points
  • 10-Year TIPS Spread 2.14 +3.0 basis points
  • 100.0% chance of Fed rate hike at August 1 meeting, 100.0% chance at September 26 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +50  open in Japan 
  • China A50 Futures: Indicating -27 open in China
  • DAX Futures: Indicating +1 open in Germany
Portfolio: 
  • Higher: On gains in my tech/medical/retail sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

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