Stocks Reversing Higher into Final Hour on Central Bank Hopes, Short-Covering, Less Eurozone Debt Angst, Biotech/Homebuilding Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Light

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 13.15 +2.40%

• Euro/Yen Carry Return Index 143.98 -.20%

• Emerging Markets Currency Volatility(VXY) 10.74 -.09%

• S&P 500 Implied Correlation 55.13 -.58%

• ISE Sentiment Index 43.0 -50.57%

• Total Put/Call .97 -3.96%

• NYSE Arms .82 -28.87% 

Credit Investor Angst:

• North American Investment Grade CDS Index 76.59 +.28%

• America Energy Sector High-Yield CDS Index 1,898.0 -.12%

• European Financial Sector CDS Index 75.71 -.88%

• Western Europe Sovereign Debt CDS Index 22.36 -.07%

• Asia Pacific Sovereign Debt CDS Index 71.05 +1.25%

• Emerging Market CDS Index 343.77 +.17%
  

• iBoxx Offshore RMB China Corporates High Yield Index 119.47 +.08%

• 2-Year Swap Spread 24.0 -.25 basis point

• TED Spread 23.75 +.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -19.75 +.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .07% -2.0 basis points

• Yield Curve 145.0 -1.0 basis point

• China Import Iron Ore Spot $56.66/Metric Tonne -.14%

• Citi US Economic Surprise Index -9.2 -4.8 points

• Citi Eurozone Economic Surprise Index 10.2 +1.4 points

• Citi Emerging Markets Economic Surprise Index -4.4 +1.9 points

• 10-Year TIPS Spread 1.60 -3.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 3.57 -.11

Overseas Futures:

• Nikkei 225 Futures: Indicating +35 open in Japan 
• China A50 Futures: Indicating -229 open in China

• DAX Futures: Indicating +19 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 50% Net Long