Stocks Rising into Final Hour on Central Bank Hopes, Bargain-Hunting, Oil Reversal Higher, Transport/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Slightly Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 27.75 -11.66%

• Euro/Yen Carry Return Index 141.20 +.04%

• Emerging Markets Currency Volatility(VXY) 12.22 +4.18%

• S&P 500 Implied Correlation 63.25 -.13%

• ISE Sentiment Index 62.0 +.7%

• Total Put/Call 1.39 +12.1%

• NYSE Arms .99 -79.96% 

Credit Investor Angst:

• North American Investment Grade CDS Index 83.60 -1.10%

• America Energy Sector High-Yield CDS Index 1,862.0 +1.45%

• European Financial Sector CDS Index 84.13 -1.46%

• Western Europe Sovereign Debt CDS Index 23.04 +3.97%

• Asia Pacific Sovereign Debt CDS Index 83.10 -1.83%

• Emerging Market CDS Index 363.49 +.05%
  

• iBoxx Offshore RMB China Corporates High Yield Index 116.82 +.08%

• 2-Year Swap Spread 13.5 +.25 basis point

• TED Spread 29.25 +2.0 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -23.50 -1.5 basis points

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 $56.70/Metric Tonne +.19%

• Citi US Economic Surprise Index -15.9 -3.3 points

• Citi Eurozone Economic Surprise Index 24.5 -.3 point

• Citi Emerging Markets Economic Surprise Index -23.5 -4.9 points

• 10-Year TIPS Spread 1.56 -2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 4.18 +.35

Overseas Futures:

• Nikkei 225 Futures: Indicating +192 open in Japan 
• China A50 Futures: Indicating n/a open in China

• DAX Futures: Indicating +35 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 50% Net Long