Stocks Surging into Final Hour on Diminishing Russia/Ukraine Tensions, Yen Weakness, Short-Covering, Transport/Financial Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Around Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 14.35 -10.31%

• Euro/Yen Carry Return Index 146.48 +.76%

• Emerging Markets Currency Volatility(VXY) 8.93 -2.19%

• S&P 500 Implied Correlation 53.60 -4.32%

• ISE Sentiment Index 132.0 +21.10%

• Total Put/Call .81 -10.0%

• NYSE Arms .76 -52.80% 

Credit Investor Angst:

• North American Investment Grade CDS Index 62.82 -3.77%

• European Financial Sector CDS Index 88.39 -4.46%

• Western Europe Sovereign Debt CDS Index 51.67 +1.29%

• Asia Pacific Sovereign Debt CDS Index 99.50 -3.81%

• Emerging Market CDS Index 303.93 -5.27%

• China Blended Corporate Spread Index 366.77 +1.89%

• 2-Year Swap Spread 13.5 -.25 basis point

• TED Spread 19.0 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -5.75 +.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .05% unch.

• Yield Curve 236.0 +7.0 basis points

• China Import Iron Ore Spot $116.80/Metric Tonne -.76%

• Citi US Economic Surprise Index -18.70 -3.4 points

• Citi Emerging Markets Economic Surprise Index 12.40 -.3 point

• 10-Year TIPS Spread 2.19 +1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating +244 open in Japan

• DAX Futures: Indicating -25 open in Germany

Portfolio: 

• Slightly Lower: On losses in my index hedges and emerging markets shorts

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added some back

• Market Exposure: Moved to 50% Net Long