Stocks Rising into Final Hour on Central Bank Hopes, Less Emerging Markets/US High-Yield Debt Angst, Short-Covering, Commodity/Transport Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Around Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 12.41 -7.6%

• Euro/Yen Carry Return Index 142.16 -.39%

• Emerging Markets Currency Volatility(VXY) 9.07 -.87%

• S&P 500 Implied Correlation 57.04 -3.40%

• ISE Sentiment Index 116.0 +46.74%

• Total Put/Call .81 -13.83%

• NYSE Arms .66 +53.13% 

Credit Investor Angst:

• North American Investment Grade CDS Index 70.30 -.98%

• America Energy Sector High-Yield CDS Index 1,614.0 -2.58%

• European Financial Sector CDS Index 73.91 -.33%

• Western Europe Sovereign Debt CDS Index 22.47 -1.75%

• Asia Pacific Sovereign Debt CDS Index 61.12 -1.46%

• Emerging Market CDS Index 311.67 -1.80%
  

• iBoxx Offshore RMB China Corporates High Yield Index 120.78 +.02%

• 2-Year Swap Spread 22.25 -2.5 basis points

• TED Spread 25.25 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -19.75 -1.0 basis point

Economic Gauges:

• 3-Month T-Bill Yield .05% unch.

• Yield Curve 158.0 unch.

• China Import Iron Ore Spot $55.89/Metric Tonne +4.6%

• Citi US Economic Surprise Index -14.9 +.9 point

• Citi Eurozone Economic Surprise Index -3.8 -.4 point

• Citi Emerging Markets Economic Surprise Index -13.6 +.3 point

• 10-Year TIPS Spread 1.77 +2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 5.40 -.06

Overseas Futures:

• Nikkei 225 Futures: Indicating +208 open in Japan 
• China A50 Futures: Indicating -299 open in China

• DAX Futures: Indicating +63 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long