04/07/11 08:12 AM EDT

THE HEDGEYE DAILY OUTLOOK

THE HEDGEYE DAILY OUTLOOK

TODAY’S S&P 500 SET-UP - April 7, 2011

Dear Ben: Call Glen because a hawkish policy works! - from Bloomberg news “Australia Adds 37,800 Jobs in March, Sending Currency to Highest on Record.” As we look at today’s set up for the S&P 500, the range is 17 points or -0.79% downside to 1325 and 0.48% upside to 1342.

SECTOR AND GLOBAL PERFORMANCE

We are on day 4 of perfect with 9 of 9 sectors positive on TRADE and 9 of 9 sectors positive on TREND.

EQUITY SENTIMENT:

ADVANCE/DECLINE LINE: 420 (+95)
VOLUME: NYSE 885.55 (+6.61%)
VIX: 16.90 -2.87% YTD PERFORMANCE: -4.79%
SPX PUT/CALL RATIO: 1.69 from 2.15 (-21.10%)

CREDIT/ECONOMIC MARKET LOOK:

Treasury 10-year yields little changed at 3.56%, adding 10 bps this week on speculation Fed may raise rates earlier than expected; bonds started day weaker.

TED SPREAD: 24.70 +1.014 (4.282%)
3-MONTH T-BILL YIELD: 0.06% -0.01%
10-Year: 3.56 from 3.50
YIELD CURVE: 1.49 from 1.69

MACRO DATA POINTS:

8:20 a.m.: Fed’s Lacker speaks in Roanoke
8:30 a.m.: Jobless claims, est. 385k, prior 388k
8:30 a.m.: Net export sales
9:45 a.m.: Bloomberg Consumer Comfort, prior (-46.9)
10:30 a.m.: EIA Natural Gas, est. (-52), prior 12
3 p.m.: Consumer Credit, est. $4.6b

WHAT TO WATCH:

Citigroup Inc. (C), the third-largest U.S. bank by assets, is seeking to expand its commodity investment-product team by a third over the next two years to tap growing demand as copper, gold and cotton rise to records.
Energy companies prepare to fight Alberta over its plans to revoke their oil-sands leases - Globe and Mail
Bullish sentiment among individual investors rose to 43.6% this week, highest since week of Feb. 17
Portugal rescue package is likely to be €75B-€90B -- Dow Jones, citing sources
GE to Build Biggest U.S. Solar Panel Plant, N.Y. Times Reports
Cleveland Fed President Sandra Pianalto said that the continuation of the Fed’s current monetary policy is warranted and that she favors a public inflation target.

COMMODITY/GROWTH EXPECTATION

COMMODITY HEADLINES FROM BLOOMBERG:

World Food Prices Seen Rebounding to Record After Grains Rally, UN Says
Cotton Surges by Exchange Limit on Concern U.S. Stockpiles Might Shrink
Copper Gains for Third Day as Rio Fuels Speculation on China Demand's Pace
Brent Crude Oil Futures Halt Five-Day Advance in London on Demand Concern
Wheat Advances as Dry Weather in U.S. Great Plains May Reduce Production
Gold, Near Record, May Advance on Concern About European Debts, Inflation
Coffee Rises as Export Shipments May Start to Slow; Sugar Prices Advance
Corn Seen Outperforming Wheat, Soybeans, Cotton as China Doubles Imports
Diversified Commodity ETPs Got Record $5.2 Billion Inflows in 1st Quarter
Shipping Rates for Coal Cargoes to Japan Seen Rising 55%: Freight Markets
Gasoline Demand at Eight-Year Low May Threaten 2011 Rally: Energy Markets
Ethanol Makers Say Libya War Boosts Profits, Concern U.S. Subsidies to End

CURRENCIES

British pound traded near two-week high vs dollar before BoE’s interest-rate announcement

EUROPEAN MARKETS

Europe rises as Portugal seeks bailout and before ECB is forecast to raise interest rates 25bp.
Germany Feb Industrial output +1.6% m/m vs consensus +0.50% and prior revised to +2.00% from +1.80%

ASIA PACIFIC MARKTES:

Asian stocks are little changed as Bank of Japan keeps credit program, asset-purchase fund unchanged.
Australian Job Growth in March Sends Currency to Record High
China benchmark index reaches 5-month high
Japan was flat after two days of losses.
Japan March foreign reserves $1.11T, +$24.54B m/m. Overnight call rate left unchanged at 0-0.1%. Australia March employment +37,800 vs consensus +22K. March unemployment 4.9% vs cons 5.0%.