Stocks Finish Substantially Higher on Central Bank Hopes, Buyout Speculation, Short-Covering, Biotech/Financial Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Slightly Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 17.09 -9.29%

• Euro/Yen Carry Return Index 137.48 +.17%

• Emerging Markets Currency Volatility(VXY) 10.47 -.66%

• S&P 500 Implied Correlation 54.87 -3.19%

• ISE Sentiment Index 95.0 +6.74%

• Total Put/Call 1.0 +13.64%

• NYSE Arms .38 -68.26% 

Credit Investor Angst:

• North American Investment Grade CDS Index 81.90 -1.34%

• America Energy Sector High-Yield CDS Index 1,242.0 +.69%

• European Financial Sector CDS Index 69.17 -1.54%

• Western Europe Sovereign Debt CDS Index 19.96 -.80%

• Asia Pacific Sovereign Debt CDS Index 68.13 -2.63%

• Emerging Market CDS Index 317.35 -1.92%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.98 +.12%

• 2-Year Swap Spread 8.0 -1.25 basis points

• TED Spread 23.25 -1.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -44.75 -2.25 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.59 +.09%
• 3-Month T-Bill Yield .12% unch.

• Yield Curve 139.0 -3.0 basis points

• China Import Iron Ore Spot $46.35/Metric Tonne +1.69%

• Citi US Economic Surprise Index -9.0 -6.2 points

• Citi Eurozone Economic Surprise Index 25.0 -1.5 points

• Citi Emerging Markets Economic Surprise Index 1.4 +.4 point

• 10-Year TIPS Spread 1.59 +3.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 2.92 +.13

Overseas Futures:

• Nikkei 225 Futures: Indicating +326 open in Japan 
• China A50 Futures: Indicating -50 open in China

• DAX Futures: Indicating +78 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 50% Net Long