Wednesday, June 05, 2019

Stocks Higher into Final Hour on Diminished Mexico Tariff Worries, Fed Rate Cut Hopes, Technical Buying, Medical/Utility Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Slightly Lower
  • Sector Performance: Mixed
  • Volume: Around Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 16.5 -2.5%
  • Euro/Yen Carry Return Index 126.44 +.03%
  • Emerging Markets Currency Volatility(VXY) 8.67 +.46%
  • S&P 500 Implied Correlation 40.11 -2.95%
  • ISE Sentiment Index 71.0 -6.58%
  • Total Put/Call 1.02 +7.4%
  • NYSE Arms 1.73 +220.3%
Credit Investor Angst:
  • North American Investment Grade CDS Index 64.93 -2.33%
  • America Energy Sector High-Yield CDS Index 613.0 -.42%
  • European Financial Sector CDS Index 82.10 -1.77%
  • Italian/German 10Y Yld Spread 269.50 -2.5 basis points
  • Asia Ex-Japan Investment Grade CDS Index 77.94 -2.20%
  • Emerging Market CDS Index 201.21 +.1%
  • iBoxx Offshore RMB China Corporate High Yield Index 163.26 -.03%
  • 2-Year Swap Spread 4.75 +.75 basis point
  • TED Spread 15.25 -2.5 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -10.5 +3.25 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 66.46 -.08%
  • 3-Month T-Bill Yield 2.34% +2.0 basis points
  • Yield Curve 28.0 +3.25 basis points
  • China Iron Ore Spot 95.81 USD/Metric Tonne -.48%
  • Citi US Economic Surprise Index -46.80 -12.8 points
  • Citi Eurozone Economic Surprise Index -19.80 +4.6 points
  • Citi Emerging Markets Economic Surprise Index -30.90 +.4 point
  • 10-Year TIPS Spread 1.77 +1.0 basis point
  • 68.5% chance of Fed rate cut at July 31st meeting, 94.4% chance of cut at Sept. 18th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -36 open in Japan 
  • China A50 Futures: Indicating -77 open in China
  • DAX Futures: Indicating -1 open in Germany
Portfolio:
  • Higher: On gains in my tech/biotech/medical/industrial sector longs
  • Disclosed Trades: None
  • Market Exposure: 75% Net Long

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