Stocks Rising into Afternoon on Lower Long-Term Rates, Technical Buying, Short-Covering, Biotech/Energy Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 12.98 -6.62%

• Euro/Yen Carry Return Index 141.84 -.06%

• Emerging Markets Currency Volatility(VXY) 8.67 -1.25%

• S&P 500 Implied Correlation 58.79 +.29%

• ISE Sentiment Index 88.0 -30.71%

• Total Put/Call 1.07 +87.72%

• NYSE Arms .75 +20.33% 

Credit Investor Angst:

• North American Investment Grade CDS Index 66.95 -1.18%

• America Energy Sector High-Yield CDS Index 1,262.0 +.29%

• European Financial Sector CDS Index 75.59 +1.58%

• Western Europe Sovereign Debt CDS Index 22.98 -1.73%

• Asia Pacific Sovereign Debt CDS Index 59.22 +.34%

• Emerging Market CDS Index 294.24 +.15%
  

• iBoxx Offshore RMB China Corporates High Yield Index 119.72 -.04%

• 2-Year Swap Spread 25.25 +.25 basis point

• TED Spread 29.0 +1.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -18.5 +.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield -.01% -2.0 basis points

• Yield Curve 176.0 unch.

• China Import Iron Ore Spot $50.06/Metric Tonne -.48%

• Citi US Economic Surprise Index -22.9 -5.8 points

• Citi Eurozone Economic Surprise Index -1.7 +1.0 point

• Citi Emerging Markets Economic Surprise Index -17.20 -1.2 points

• 10-Year TIPS Spread 1.87 -1.0 basis point
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 6.24 -.08

Overseas Futures:

• Nikkei 225 Futures: Indicating +155 open in Japan 
• China A50 Futures: Indicating -498 open in China

• DAX Futures: Indicating +7 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long