Stocks Surging into Final Hour on Diminished Russia/Ukraine Tensions, Buyout Speculation, Central Bank Hopes, Homebuilding/Transport Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Light

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 13.55 +9.10%

• Euro/Yen Carry Return Index 143.09 -.08%

• Emerging Markets Currency Volatility(VXY) 6.77 -.73%

• S&P 500 Implied Correlation 49.24 -2.78%

• ISE Sentiment Index 96.0 +28.0%

• Total Put/Call .92 -7.07%

• NYSE Arms .82 -35.81% 

Credit Investor Angst:

• North American Investment Grade CDS Index 57.19 -3.98%

• European Financial Sector CDS Index 65.50 -5.75%

• Western Europe Sovereign Debt CDS Index 34.0 +.34%
• Asia Pacific Sovereign Debt CDS Index 70.46 -1.25%

• Emerging Market CDS Index 269.47 -1.30%

• China Blended Corporate Spread Index 316.05 +1.08%
• 2-Year Swap Spread 23.25 +1.0 basis point

• TED Spread 20.75 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -14.75 -1.25 basis points

Economic Gauges:

• 3-Month T-Bill Yield .03% unch.

• Yield Curve 197.0 +4.0 basis points

• China Import Iron Ore Spot $93.30/Metric Tonne -.11%

• Citi US Economic Surprise Index -2.0 +3.7 points

• Citi Emerging Markets Economic Surprise Index -12.30 -4.5 points

• 10-Year TIPS Spread 2.19 unch.

Overseas Futures:

• Nikkei Futures: Indicating +108 open in Japan

• DAX Futures: Indicating +16 open in Germany

Portfolio: 

• Higher: On gains in my biotech/tech/medical/retail sector longs

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 75% Net Long