Stocks Higher into Afternoon on Lower Long-Term Rates, Less Emerging Markets Debt Angst, Technical Buying, Transport/Gaming Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Slightly Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 12.62 -4.64%

• Euro/Yen Carry Return Index 145.08 -.05%

• Emerging Markets Currency Volatility(VXY) 9.57 +.74%

• S&P 500 Implied Correlation 60.67 +.33%

• ISE Sentiment Index 52.0 -52.59%

• Total Put/Call .84 +37.70%

• NYSE Arms 1.14 +133.69% 

Credit Investor Angst:

• North American Investment Grade CDS Index 65.46 -1.12%

• America Energy Sector High-Yield CDS Index 1,526.0 +.02%

• European Financial Sector CDS Index 76.54 -.81%

• Western Europe Sovereign Debt CDS Index 23.08 -.92%

• Asia Pacific Sovereign Debt CDS Index 61.82 +.06%

• Emerging Market CDS Index 310.94 -1.93%
  

• iBoxx Offshore RMB China Corporates High Yield Index 120.26 +.07%

• 2-Year Swap Spread 26.0 +.25 basis point

• TED Spread 28.0 +.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -20.75 -3.75 basis points

Economic Gauges:

• 3-Month T-Bill Yield .01% -1.0 basis point

• Yield Curve 167.0 -8.0 basis points

• China Import Iron Ore Spot $65.61/Metric Tonne +.34%

• Citi US Economic Surprise Index -37.70 +3.5 points

• Citi Eurozone Economic Surprise Index 5.1 +1.1 points

• Citi Emerging Markets Economic Surprise Index -20.80 -3.2 points

• 10-Year TIPS Spread 1.86 -3.0 basis points

Overseas Futures:

• Nikkei 225 Futures: Indicating +126 open in Japan 
• China A50 Futures: Indicating -103 open in China

• DAX Futures: Indicating -5 open in Germany

Portfolio: 

• Higher: On gains in my retail/biotech/medical sector longs and emerging markets shorts

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

• Market Exposure: Moved to 75% Net Long