Stocks Slightly Higher Midday on Less European Debt Angst, Short-Covering, Seasonal Strength, Retail/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Mixed
  

• Volume: Light

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 15.46 -2.95%

• Euro/Yen Carry Return Index 136. 16 -.07%

• Emerging Markets Currency Volatility(VXY) 10.35 unch.

• S&P 500 Implied Correlation 57.21 +.10%

• ISE Sentiment Index 176.0 +120.0%

• Total Put/Call 1.12 +5.66%

• NYSE Arms 1.36 +77.6% 

Credit Investor Angst:

• North American Investment Grade CDS Index 84.85 -.77%

• America Energy Sector High-Yield CDS Index 1,314.0 -.08%

• European Financial Sector CDS Index 68.28 -3.11%

• Western Europe Sovereign Debt CDS Index 18.86 -1.15%

• Asia Pacific Sovereign Debt CDS Index 69.23 -1.03%

• Emerging Market CDS Index 318.71 +.64%
  

• iBoxx Offshore RMB China Corporate High Yield Index 124.33 -.01%

• 2-Year Swap Spread 5.75 unch.

• TED Spread 23.50 -3.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -47.0 +2.0 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.74 -.30%
• 3-Month T-Bill Yield .17% +1.0 basis point

• Yield Curve 130.0 -1.0 basis point

• China Import Iron Ore Spot $44.07/Metric Tonne +.41%

• Citi US Economic Surprise Index -16.5 +.7 point

• Citi Eurozone Economic Surprise Index 34.20 -1.2 points

• Citi Emerging Markets Economic Surprise Index 4.0 +1.2 points

• 10-Year TIPS Spread 1.63 -1.0 basis point
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 1.88 -.17

Overseas Futures:

• Nikkei 225 Futures: Indicating +69 open in Japan 
• China A50 Futures: Indicating -31 open in China

• DAX Futures: Indicating -2 open in Germany

Portfolio: 

• Higher: On gains in my biotech/retail sector longs and emerging markets shorts 

• Disclosed Trades: None

• Market Exposure: 50% Net Long