Stocks Surging into Final Hour on Central Bank Hopes, Less Eurozone/Emerging Markets Debt Angst, Short-Covering, Commodity/Tech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 12.37 -7.62%

• Euro/Yen Carry Return Index 143.43 +.79%

• Emerging Markets Currency Volatility(VXY) 9.32 -.85%

• S&P 500 Implied Correlation 53.52 -2.27%

• ISE Sentiment Index 83.0 +48.21%

• Total Put/Call .53 -56.91%

• NYSE Arms .39 -73.25% 

Credit Investor Angst:

• North American Investment Grade CDS Index 73.55 -2.1%

• America Energy Sector High-Yield CDS Index 1,882.0 +2.30%

• European Financial Sector CDS Index 74.06 -3.28%

• Western Europe Sovereign Debt CDS Index 22.49 +.02%

• Asia Pacific Sovereign Debt CDS Index 64.75 -.77%

• Emerging Market CDS Index 329.71 -2.0%
  

• iBoxx Offshore RMB China Corporates High Yield Index 121.23 +.20%

• 2-Year Swap Spread 25.25 +.5 basis point

• TED Spread 25.0 -3.0 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -19.25 +1.25 basis points

Economic Gauges:

• 3-Month T-Bill Yield .07% +1.0 basis point

• Yield Curve 151.0 +6.0 basis points

• China Import Iron Ore Spot $56.40/Metric Tonne n/a

• Citi US Economic Surprise Index -5.9 +2.3 points

• Citi Eurozone Economic Surprise Index 15.9 +.9 point

• Citi Emerging Markets Economic Surprise Index -5.8 -2.3 points

• 10-Year TIPS Spread 1.70 unch.
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 4.39 -.23

Overseas Futures:

• Nikkei 225 Futures: Indicating +107 open in Japan 
• China A50 Futures: Indicating -76 open in China

• DAX Futures: Indicating -3 open in Germany

Portfolio: 

• Slightly Lower: On losses in my index hedges and emerging markets shorts 

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

• Market Exposure: Moved to 75% Net Long