Stocks Higher into Final Hour on Central Bank Hopes, Short-Covering, Less European/Emerging Markets Debt Angst, Retail/Healthcare Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 15.86 -6.66%

• Euro/Yen Carry Return Index 136. 70 -.80%

• Emerging Markets Currency Volatility(VXY) 10.18 -.88%

• S&P 500 Implied Correlation 56.10 -3.32%

• ISE Sentiment Index 91.0 -7.14%

• Total Put/Call .98 +4.26%

• NYSE Arms 1.64 +46.56% 

Credit Investor Angst:

• North American Investment Grade CDS Index 84.05 -.12%

• America Energy Sector High-Yield CDS Index 1,298.0 +3.81%

• European Financial Sector CDS Index 69.97 -.76%

• Western Europe Sovereign Debt CDS Index 18.99 -1.94%

• Asia Pacific Sovereign Debt CDS Index 67.61 -.18%

• Emerging Market CDS Index 311.94 -1.62%
  

• iBoxx Offshore RMB China Corporate High Yield Index 124.15 +.12%

• 2-Year Swap Spread 6.0 +.25 basis point

• TED Spread 27.75 +3.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -447.75 -3.5 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 71.15 +.13%
• 3-Month T-Bill Yield .10% +1.0 basis point

• Yield Curve 136.0 +1.0 basis point

• China Import Iron Ore Spot $44.91/Metric Tonne -1.17%

• Citi US Economic Surprise Index -9.1 -.5 point

• Citi Eurozone Economic Surprise Index 24.0 -.6 point

• Citi Emerging Markets Economic Surprise Index 2.10 +2.1 points

• 10-Year TIPS Spread 1.64 +3.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 2.67 -.03

Overseas Futures:

• Nikkei 225 Futures: Indicating +55 open in Japan 
• China A50 Futures: Indicating +3 open in China

• DAX Futures: Indicating -11 open in Germany

Portfolio: 

• Slightly Lower: On losses in my index hedges and emerging market shorts

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

• Market Exposure: Moved to 50% Net Long