Stocks Rising into Final Hour on Central Bank Hopes, Short-Covering, Oil Bounce, Energy/Retail Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Slightly Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 14.24 +.64%

• Euro/Yen Carry Return Index 138.55 -.30%

• Emerging Markets Currency Volatility(VXY) 10.55 -2.13%

• S&P 500 Implied Correlation 55.37 -1.53%

• ISE Sentiment Index 85.0 -15.84%

• Total Put/Call .93 +3.33%

• NYSE Arms .67 -19.18% 

Credit Investor Angst:

• North American Investment Grade CDS Index 75.33 -1.66%

• America Energy Sector High-Yield CDS Index 1,136.0 -1.86%

• European Financial Sector CDS Index 67.75 -1.81%

• Western Europe Sovereign Debt CDS Index 19.45 +2.10%

• Asia Pacific Sovereign Debt CDS Index 69.74 -1.50%

• Emerging Market CDS Index 297.41 -5.15%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.14 +.08%

• 2-Year Swap Spread 11.25 -.5 basis point

• TED Spread 25.75 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -30.25 -1.0 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 72.43 +.55%
• 3-Month T-Bill Yield .05% -1.0 basis point

• Yield Curve 145.0 +2.0 basis points

• China Import Iron Ore Spot $49.11/Metric Tonne -.79%

• Citi US Economic Surprise Index -13.4 -.3 point

• Citi Eurozone Economic Surprise Index 32.4 +.1 point

• Citi Emerging Markets Economic Surprise Index -8.3 +.9 point

• 10-Year TIPS Spread 1.59 +4.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 3.87 -.16

Overseas Futures:

• Nikkei 225 Futures: Indicating +417 open in Japan 
• China A50 Futures: Indicating +24 open in China

• DAX Futures: Indicating +17 open in Germany

Portfolio: 

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

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

• Market Exposure: 50% Net Long