Stocks Surging into Final Hour on Central Bank Hopes, Less European/US High-Yield Debt Angst, Bargain-Hunting, Tech/Oil Service Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 33.77 -6.25%

• Euro/Yen Carry Return Index 141.88 -.81%

• Emerging Markets Currency Volatility(VXY) 12.51 +2.54%

• S&P 500 Implied Correlation 57.54 +.26%

• ISE Sentiment Index 69.0 -10.39%

• Total Put/Call 1.03 -18.9%

• NYSE Arms .52 -83.12% 

Credit Investor Angst:

• North American Investment Grade CDS Index 84.47 -3.22%

• America Energy Sector High-Yield CDS Index 1,930.0 -1.06%

• European Financial Sector CDS Index 84.66 -.31%

• Western Europe Sovereign Debt CDS Index 23.82 -3.31%

• Asia Pacific Sovereign Debt CDS Index 80.78 -2.17%

• Emerging Market CDS Index 375.58 +1.0%
  

• iBoxx Offshore RMB China Corporates High Yield Index 117.15 -.14%

• 2-Year Swap Spread 14.0 -5.75 basis points

• TED Spread 26.50 -1.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -20.25 -.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .05% +1.0 basis point

• Yield Curve 150.0 +1.0 basis point

• China Import Iron Ore Spot $53.67/Metric Tonne +.41%

• Citi US Economic Surprise Index -9.3 +6.0 points

• Citi Eurozone Economic Surprise Index 17.4 -.5 point

• Citi Emerging Markets Economic Surprise Index -7.9 +.1 point

• 10-Year TIPS Spread 1.54 +1.0 basis point

• # of Months to 1st Fed Rate Hike(Morgan Stanley) 6.55 unch.

Overseas Futures:

• Nikkei 225 Futures: Indicating +4 open in Japan 

• China A50 Futures: Indicating -76 open in China

• DAX Futures: Indicating unch. open in Germany

Portfolio: 

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my emerging markets shorts

• Market Exposure: Moved to 75% Net Long