Stocks Reversing Slightly Higher into Final Hour on Central Bank Hopes, Short-Covering, Technical Buying, Energy/Utility Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 13.99 +2.04%

• Euro/Yen Carry Return Index 144.84 +.37%

• Emerging Markets Currency Volatility(VXY) 11.75 +8.29%

• S&P 500 Implied Correlation 54.98 -1.75%

• ISE Sentiment Index 50.0 -10.71%

• Total Put/Call 1.04 -5.45%

• NYSE Arms .80 -48.18% 

Credit Investor Angst:

• North American Investment Grade CDS Index 76.29 +1.27%

• America Energy Sector High-Yield CDS Index 1,887.0 +1.93%

• European Financial Sector CDS Index 79.03 +2.27%

• Western Europe Sovereign Debt CDS Index 22.77 +4.50%

• Asia Pacific Sovereign Debt CDS Index 70.58 +2.59%

• Emerging Market CDS Index 335.06 +.76%
  

• iBoxx Offshore RMB China Corporates High Yield Index 120.81 -.23%

• 2-Year Swap Spread 25.0 unch.

• TED Spread 21.75 +1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -20.0 -.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .10% unch.

• Yield Curve 148.0 +2.0 basis points

• China Import Iron Ore Spot $56.31/Metric Tonne +.16%

• Citi US Economic Surprise Index -4.1 +1.8 points

• Citi Eurozone Economic Surprise Index 12.0 +.1 point

• Citi Emerging Markets Economic Surprise Index -7.7 -2.9 points

• 10-Year TIPS Spread 1.64 -2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 4.80 +.51

Overseas Futures:

• Nikkei 225 Futures: Indicating -82 open in Japan 
• China A50 Futures: Indicating -156 open in China

• DAX Futures: Indicating +113 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 50% Net Long