Stocks Reversing Slightly Higher into Final Hour on Central Bank Hopes, Lower Long-Term Rates, Technical Buying, Restaurant/Homebuilding Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 24.53 +.66%

• Euro/Yen Carry Return Index 142.79 +.50%

• Emerging Markets Currency Volatility(VXY) 12.64 -1.56%

• S&P 500 Implied Correlation 64.46 -.51%

• ISE Sentiment Index 81.0 +10.96%

• Total Put/Call 1.39 +17.80%

• NYSE Arms 1.27 +62.55% 

Credit Investor Angst:

• North American Investment Grade CDS Index 79.73 -.11%

• America Energy Sector High-Yield CDS Index 1,905.0 +.29%

• European Financial Sector CDS Index 82.21 +.91%

• Western Europe Sovereign Debt CDS Index 21.47 +1.80%

• Asia Pacific Sovereign Debt CDS Index 86.33 +1.05%

• Emerging Market CDS Index 354.03 +.62%
  

• iBoxx Offshore RMB China Corporates High Yield Index 117.86 +.52%

• 2-Year Swap Spread 14.5 +1.25 basis points

• TED Spread 31.25 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -24.0 -.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .03% +1.0 basis point

• Yield Curve 148.0 -1.0 basis point

• China Import Iron Ore Spot $59.01/Metric Tonne unch.

• Citi US Economic Surprise Index -22.2 -5.6 points

• Citi Eurozone Economic Surprise Index 24.6 +1.6 poins

• Citi Emerging Markets Economic Surprise Index -22.8 +.7 point

• 10-Year TIPS Spread 1.59 -1.0 basis point
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 3.95 -.03

Overseas Futures:

• Nikkei 225 Futures: Indicating -119 open in Japan 
• China A50 Futures: Indicating -157 open in China

• DAX Futures: Indicating +26 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long