Stocks Modestly Higher into Afternoon on Central Bank Hopes, Oil Bounce, Technical Buying, Financial/Defense Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Slightly Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 13.33 -1.19%

• Euro/Yen Carry Return Index 144.38 -.38%

• Emerging Markets Currency Volatility(VXY) 10.75 -1.47%

• S&P 500 Implied Correlation 55.97 -1.44%

• ISE Sentiment Index 92.0 +19.48%

• Total Put/Call 1.12 +17.89%

• NYSE Arms 1.10 -9.42% 

Credit Investor Angst:

• North American Investment Grade CDS Index 76.83 +.25%

• America Energy Sector High-Yield CDS Index 1,901.0 -.21%

• European Financial Sector CDS Index 76.41 +.78%

• Western Europe Sovereign Debt CDS Index 22.27 -2.17%

• Asia Pacific Sovereign Debt CDS Index 70.07 +2.11%

• Emerging Market CDS Index 343.18 +1.23%
  

• iBoxx Offshore RMB China Corporates High Yield Index 119.38 -.44%

• 2-Year Swap Spread 24.25 unch.

• TED Spread 23.0 +1.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -20.5 -.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .09% +1.0 basis point

• Yield Curve 146.0 -2.0 basis points

• China Import Iron Ore Spot $56.74/Metric Tonne -.49%

• Citi US Economic Surprise Index -4.4 +1.0 point

• Citi Eurozone Economic Surprise Index 8.8 -3.4 points

• Citi Emerging Markets Economic Surprise Index -6.3 +1.1 points

• 10-Year TIPS Spread 1.63 unch.
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 3.68 -.32

Overseas Futures:

• Nikkei 225 Futures: Indicating +56 open in Japan 
• China A50 Futures: Indicating -124 open in China

• DAX Futures: Indicating +36 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 50% Net Long