I’m seeing big buyers of SPX call upside around 1850 and 1860. Upside vol is cheap, and unless Yellen destroys the party, market can rally into long weekend. Expecting a re-test of highs on cash deployment and continued decent earnings off LOW BAR into earnings season.
US Cap Utilization is at multi-year highs as US data points improve with the spring weather.
Burberry continues to receive the benefit of a growing luxury class in the emerging markets.
Our spread analysis of Emerging Market equities vs Developed Market equities failed to breach the .2300 level as we proposed last week after an 11% outperformance move over the preceding 4 weeks.
WTI crude oil (USO, quote) continues its climb higher overnight to over $104.40 a barrel before settling back under $104 handle at U.S. equities open. Crude oil has not seen $104 handle since mid-September.
The recent Emerging Market rally is built off a combination of fundamental and technical factors.
Folks, rotation is good ultimately but not for momentum stocks, and this has been going on for months, not days.
As per Merrill Lynch, you would be up 48% on the spread.