Stocks Surging into Afternoon on China Bounce, Central Bank Hopes, Less Emerging Markets Debt Angst, Biotech/Tech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Every Sector Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 25.21 -9.32%

• Euro/Yen Carry Return Index 139.99 +.59%

• Emerging Markets Currency Volatility(VXY) 12.40 -3.88%

• S&P 500 Implied Correlation 63.61 -.56%

• ISE Sentiment Index 71.0 +3.0%

• Total Put/Call .97 -32.17%

• NYSE Arms .51 -83.69% 

Credit Investor Angst:

• North American Investment Grade CDS Index 80.27 -3.74%

• America Energy Sector High-Yield CDS Index 1,937.0 +6.99%

• European Financial Sector CDS Index 82.44 -1.0%

• Western Europe Sovereign Debt CDS Index 21.87 +.88%

• Asia Pacific Sovereign Debt CDS Index 84.91 -2.23%

• Emerging Market CDS Index 353.13 -2.56%
  

• iBoxx Offshore RMB China Corporates High Yield Index 116.72 +.13%

• 2-Year Swap Spread 12.75 -.5 basis point

• TED Spread 30.25 -1.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -24.0 -.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .03% unch.

• Yield Curve 145.0 +2.0 basis points

• China Import Iron Ore Spot $57.42/Metric Tonne +1.0%

• Citi US Economic Surprise Index -16.6 -1.0 point

• Citi Eurozone Economic Surprise Index 22.8 -2.6 points

• Citi Emerging Markets Economic Surprise Index -25.6 -1.8 points

• 10-Year TIPS Spread 1.53 +2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 4.32 -.04

Overseas Futures:

• Nikkei 225 Futures: Indicating +593 open in Japan 
• China A50 Futures: Indicating +13 open in China

• DAX Futures: Indicating +27 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long