First Call - Hedge Fund Telemetry

S&P futures up 0.1% after US equities finished higher on Monday with the S&P and Nasdaq pushing further into record territory. Asian markets mostly higher overnight, though upside fairly modest. China saw a slight pullback following big Monday rally. European equities higher. Treasuries unchanged to a touch weaker. Dollar (below 50 day moving average again) lagging on euro cross, while little changed vs yen. Gold up 0.2%. WTI crude flat.
Quiet session thus far. Bulk of the headlines continue to revolve around trade. All eyes on Canada, which will now rejoin the NAFTA talks. While there are elements of the US-Mexico agreement that seem unacceptable to Canada (particularly the elimination of anti-dumping panels) and White House has said it will go forward with a bilateral deal, legal objections and pressure from Congress and business groups boost potential for a three-way deal.
Some focus on continued yuan strength following reintroduction of counter-cyclical factor in fixing mechanism. This dynamic a key driver of recent pickup in global sentiment given accompanying dollar/commodity/risk asset dynamics. More tough talk on budget from Italian officials (some thoughts Italy an underappreciated pocket of risk for global markets). UK’s May downplayed concern about a no-deal Brexit.
BBY beat and raised, but Q3 guidance light. TIF up following beat and raise. DSW sharply higher following big comp beat and strategic actions. NY Post reported CPB unlikely to pursue an outright sale. President Trump alleged leftwing bias on the part of Google News.
Volumes remain well below average despite indices making record highs in 3 of the last 5 sessions. Only once in the last 20 sessions has the US seen volume above the 6.9B YTD average.
Financials led the S&P higher yesterday (+1.34%), this as the 2/10 Yr spread remains under 20 bps for the third straight session (new 11+ year lows).
S&P and Nasdaq bullish sentiment now in the extreme zone at 80%. S&P Futures today has a DeMark Sequential Countdown 13 upside exhaustion and green sell Setup 9

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