Stocks Reversing Slightly Higher into Final Hour on Lower Long-Term Rates, Less US High-Yield Debt Angst, Technical Buying, Technology/Gaming Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 12.39 -.88%

• Euro/Yen Carry Return Index 141.69 -.37%

• Emerging Markets Currency Volatility(VXY) 9.30 +3.22%

• S&P 500 Implied Correlation 57.63 -.76%

• ISE Sentiment Index 92.0 -21.37%

• Total Put/Call .72 -20.0%

• NYSE Arms 1.35 +125.39% 

Credit Investor Angst:

• North American Investment Grade CDS Index 71.16 +1.31%

• America Energy Sector High-Yield CDS Index 1,579.0 -2.05%

• European Financial Sector CDS Index 74.89 +1.29%

• Western Europe Sovereign Debt CDS Index 21.98 -2.18%

• Asia Pacific Sovereign Debt CDS Index 62.44 +2.16%

• Emerging Market CDS Index 314.02 +.89%
  

• iBoxx Offshore RMB China Corporates High Yield Index 120.95 +.14%

• 2-Year Swap Spread 23.5 +1.25 basis points

• TED Spread 24.5 -.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -20.75 -1.0 basis point

Economic Gauges:

• 3-Month T-Bill Yield .06% +1.0 basis point

• Yield Curve 154.0 -4.0 basis points

• China Import Iron Ore Spot $55.89/Metric Tonne -.45%

• Citi US Economic Surprise Index -16.3 -1.4 points

• Citi Eurozone Economic Surprise Index 3.2 +7.0 points

• Citi Emerging Markets Economic Surprise Index -12.8 +.8 point

• 10-Year TIPS Spread 1.76 -1.0 basis point
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 5.28 -.12

Overseas Futures:

• Nikkei 225 Futures: Indicating +48 open in Japan 
• China A50 Futures: Indicating -298 open in China

• DAX Futures: Indicating +4 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long