Stocks Higher into Final Hour on Central Bank Hopes, Less European/Emerging Markets/US High-Yield Debt Angst, Short-Covering, Homebuilding/Commodity Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Slightly Above Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 19.19 -1.08%

• Euro/Yen Carry Return Index 140.92 -.43%

• Emerging Markets Currency Volatility(VXY) 11.34 -.61%

• S&P 500 Implied Correlation 61.90 +.44%

• ISE Sentiment Index 87.0 +22.54%

• Total Put/Call 1.09 +17.20%

• NYSE Arms 1.05 +27.08% 

Credit Investor Angst:

• North American Investment Grade CDS Index 83.63 -4.44%

• America Energy Sector High-Yield CDS Index 1,029.0 -1.48%

• European Financial Sector CDS Index 82.21 -3.74%

• Western Europe Sovereign Debt CDS Index 20.90 +1.55%

• Asia Pacific Sovereign Debt CDS Index 81.34 -3.19%

• Emerging Market CDS Index 344.40 -1.31%
  

• iBoxx Offshore RMB China Corporates High Yield Index 120.34 +.38%

• 2-Year Swap Spread 12.0 -.25 basis point

• TED Spread 32.75 -1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -25.50 unch.

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 71.99 +.59%
• 3-Month T-Bill Yield -.01% unch.

• Yield Curve 144.0 +1.0 basis point

• China Import Iron Ore Spot $53.14/Metric Tonne n/a

• Citi US Economic Surprise Index -28.90 +.5 point

• Citi Eurozone Economic Surprise Index 8.40 -5.4 points

• Citi Emerging Markets Economic Surprise Index -21.60 -1.3 points

• 10-Year TIPS Spread 1.55 +2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 6.06 -.91

Overseas Futures:

• Nikkei 225 Futures: Indicating +43 open in Japan 
• China A50 Futures: Indicating n/a open in China

• DAX Futures: Indicating +34 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 50% Net Long