Stocks Surging into Final Hour on Central Bank Hopes, Less Emerging Markets Debt Angst, Buyout Speculation, Biotech/Financial Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 16.5 -8.49%

• Euro/Yen Carry Return Index 141.25 -.83%

• Emerging Markets Currency Volatility(VXY) 11.07 -.81%

• S&P 500 Implied Correlation 62.27 -4.26%

• ISE Sentiment Index 52.0 -40.91%

• Total Put/Call 1.05 +9.38%

• NYSE Arms 1.03 +36.35% 

Credit Investor Angst:

• North American Investment Grade CDS Index 82.94 -2.75%

• America Energy Sector High-Yield CDS Index 1,039.0 -.14%

• European Financial Sector CDS Index 79.38 -1.95%

• Western Europe Sovereign Debt CDS Index 21.53 +2.23%

• Asia Pacific Sovereign Debt CDS Index 76.83 -5.21%

• Emerging Market CDS Index 330.20 -3.64%
  

• iBoxx Offshore RMB China Corporates High Yield Index 121.25 +.20%

• 2-Year Swap Spread 11.75 +.25 basis point

• TED Spread 32.5 +.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -22.25 -.5 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 73.60 +.61%
• 3-Month T-Bill Yield .00% +1.0 basis point

• Yield Curve 143.0 unch.

• China Import Iron Ore Spot $53.74/Metric Tonne -2.5%

• Citi US Economic Surprise Index -18.50 +8.2 points

• Citi Eurozone Economic Surprise Index 6.0 unch.

• Citi Emerging Markets Economic Surprise Index -17.10 +.3 point

• 10-Year TIPS Spread 1.51 +1.0 basis point
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 7.57 +1.79

Overseas Futures:

• Nikkei 225 Futures: Indicating +164 open in Japan 
• China A50 Futures: Indicating +148 open in China

• DAX Futures: Indicating +49 open in Germany

Portfolio: 

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added them back

• Market Exposure: 50% Net Long