Stocks Slightly Higher into Final Hour on Central Bank Hopes, Buyout Speculation, China Bounce, Airline/HMO Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 16.46 -3.63%

• Euro/Yen Carry Return Index 142.38 -.17%

• Emerging Markets Currency Volatility(VXY) 11.06 -2.64%

• S&P 500 Implied Correlation 61.84 +1.91%

• ISE Sentiment Index 109.0 +17.20%

• Total Put/Call .87 +1.16%

• NYSE Arms 1.92 +50.54% 

Credit Investor Angst:

• North American Investment Grade CDS Index 81.24 -.27%

• America Energy Sector High-Yield CDS Index 998.0 -.96%

• European Financial Sector CDS Index 78.0 -2.07%

• Western Europe Sovereign Debt CDS Index 20.57 -1.67%

• Asia Pacific Sovereign Debt CDS Index 78.89 -.59%

• Emerging Market CDS Index 330.66 +.23%
  

• iBoxx Offshore RMB China Corporates High Yield Index 120.72 +.13%

• 2-Year Swap Spread 12.75 n/a

• TED Spread 31.75 n/a

• 3-Month EUR/USD Cross-Currency Basis Swap -22.75 +.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 73.39 +.1%
• 3-Month T-Bill Yield .00% n/a

• Yield Curve 145.0 n/a

• China Import Iron Ore Spot $56.61/Metric Tonne +1.07%

• Citi US Economic Surprise Index -24.30 +2.0 points

• Citi Eurozone Economic Surprise Index 8.70 -.3 point

• Citi Emerging Markets Economic Surprise Index -18.80 +.1 point

• 10-Year TIPS Spread 1.53 -2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 5.40 -.21

Overseas Futures:

• Nikkei 225 Futures: Indicating -63 open in Japan 
• China A50 Futures: Indicating +18 open in China

• DAX Futures: Indicating -13 open in Germany

Portfolio: 

• Higher: On gains in my tech/medical sector longs and emerging markets shorts

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

• Market Exposure: Moved to 50% Net Long