Stocks Surging into Afternoon on Greece Debt Deal Hopes, China Bounce, Less European/Emerging Markets/US High-Yield Debt Angst, Drug/Transport Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 17.36 -13.07%

• Euro/Yen Carry Return Index 142.83 +2.10%

• Emerging Markets Currency Volatility(VXY) 8.87 -3.06%

• S&P 500 Implied Correlation 59.88 -5.42%

• ISE Sentiment Index 79.0 -10.2%

• Total Put/Call .97 -17.09%

• NYSE Arms .86 +8.92% 

Credit Investor Angst:

• North American Investment Grade CDS Index 68.86 -5.37%

• America Energy Sector High-Yield CDS Index 1,261.0 -.80%

• European Financial Sector CDS Index 79.43 -13.37%

• Western Europe Sovereign Debt CDS Index 25.25 -17.09%

• Asia Pacific Sovereign Debt CDS Index 59.92 -2.91%

• Emerging Market CDS Index 300.99 -3.12%
  

• iBoxx Offshore RMB China Corporates High Yield Index 119.24 +.09%

• 2-Year Swap Spread 25.75 +.5 basis point

• TED Spread 26.75 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -19.5 +2.25 basis points

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 176.0 +4.0 basis points

• China Import Iron Ore Spot $50.10/Metric Tonne +2.27%

• Citi US Economic Surprise Index -21.8 +1.1 points

• Citi Eurozone Economic Surprise Index -3.9 +2.2 points

• Citi Emerging Markets Economic Surprise Index -19.50 -2.0 points

• 10-Year TIPS Spread 1.89 +3.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 7.43 -.44

Overseas Futures:

• Nikkei 225 Futures: Indicating +331 open in Japan 
• China A50 Futures: Indicating -366 open in China

• DAX Futures: Indicating +55 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