Stocks Surging into Final Hour on Buyout Speculation, Short-Covering, Diminished Global Growth Fears, Energy/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 13.85 -8.1%

• Euro/Yen Carry Return Index 138.94 +.2%

• Emerging Markets Currency Volatility(VXY) 10.75 -.56%

• S&P 500 Implied Correlation 56.45 -3.64%

• ISE Sentiment Index 112.0 +11.0%

• Total Put/Call .82 -22.68%

• NYSE Arms .88 -37.60% 

Credit Investor Angst:

• North American Investment Grade CDS Index 77.18 -2.14%

• America Energy Sector High-Yield CDS Index 1,158.0 +2.62%

• European Financial Sector CDS Index 69.0 +.17%

• Western Europe Sovereign Debt CDS Index 19.06 unch.

• Asia Pacific Sovereign Debt CDS Index 71.11 -1.50%

• Emerging Market CDS Index 312.96 -3.76%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.04 +.32%

• 2-Year Swap Spread 11.75 +.5 basis point

• TED Spread 26.25 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -29.25 unch.

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 72.01 -.01%
• 3-Month T-Bill Yield .06% -1.0 basis point

• Yield Curve 143.0 +1.0 basis point

• China Import Iron Ore Spot $49.50/Metric Tonne -.66%

• Citi US Economic Surprise Index -13.1 -.4 point

• Citi Eurozone Economic Surprise Index 32.3 -.4 point

• Citi Emerging Markets Economic Surprise Index -9.2 +1.3 points

• 10-Year TIPS Spread 1.55 +2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 4.03 -.04

Overseas Futures:

• Nikkei 225 Futures: Indicating +312 open in Japan 
• China A50 Futures: Indicating -4 open in China

• DAX Futures: Indicating +23 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long