Wednesday, May 27, 2020

Stocks Higher into Final Hour on Global Stimulus Optimism, Economy Re-Opening Hopes, Short-Covering, Financial/Transport Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Above Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 27.9 -.36%
  • Euro/Yen Carry Return Index 122.74 +.22%
  • Emerging Markets Currency Volatility(VXY) 10.7 +1.4%
  • S&P 500 Implied Correlation 61.7 -2.6%
  • ISE Sentiment Index 105.0 +16.0 points
  • Total Put/Call .87 +8.8%
  • NYSE Arms .79 -26.2%
Credit Investor Angst:
  • North American Investment Grade CDS Index 80.53 -5.69%
  • US Energy High-Yield OAS 1,029.66 -1.32%
  • European Financial Sector CDS Index 82.52 -3.65%
  • Italian/German 10Y Yld Spread 191.50 +1.5 basis points
  • Asia Ex-Japan Investment Grade CDS Index 101.31 -3.69%
  • Emerging Market CDS Index 291.22 -.04%
  • iBoxx Offshore RMB China Corporate High Yield Index 166.20 +.34%
  • 2-Year Swap Spread 8.5 -.5 basis point
  • TED Spread 23.5 -1.5 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -10.5 -1.5 basis points
  • MBS  5/10 Treasury Spread  116.0 +3.0 basis points
  • IHS Markit CMBX BBB- 6 64.0 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 59.97 -.13%
  • 3-Month T-Bill Yield .14% +2.0 basis points
  • Yield Curve 52.75 +3.75 basis points
  • China Iron Ore Spot 93.92 USD/Metric Tonne +2.12%
  • Citi US Economic Surprise Index -75.30 +3.9 points
  • Citi Eurozone Economic Surprise Index -251.0 -4.7 points
  • Citi Emerging Markets Economic Surprise Index 8.8 +1.1 points
  • 10-Year TIPS Spread 1.13 -1.0 basis point
  • 99.3% chance of no change at July 29th meeting, 99.3% chance of no change at Sept. 16th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +156 open in Japan 
  • China A50 Futures: Indicating -23 open in China
  • DAX Futures: Indicating +43 open in Germany
Portfolio:
  • Slightly Higher: On gains in my tech/medical/consumer staple/industrial sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges, then covered some of them
  • Market Exposure: 50% Net Long

1 comment:

JC said...

Hi Gary,
NOw that we have broken thru the 200ma, are we going higher? Or do we need confirmation with a 50/200ma cross, which could be weeks away?
Read your blog every day for many years. It is the best.
JC