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

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 18.49 -7.92%

• Euro/Yen Carry Return Index 137.51 -.36%

• Emerging Markets Currency Volatility(VXY) 10.65 -.46%

• S&P 500 Implied Correlation 55.90 -5.14%

• ISE Sentiment Index 116.0 -1.0%

• Total Put/Call .86 -25.86%

• NYSE Arms .60 -52.73% 

Credit Investor Angst:

• North American Investment Grade CDS Index 84.30 -.71%

• America Energy Sector High-Yield CDS Index 1,244.0 +4.85%

• European Financial Sector CDS Index 75.13 -.49%

• Western Europe Sovereign Debt CDS Index 20.93 +4.83%

• Asia Pacific Sovereign Debt CDS Index 70.80 -.92%

• Emerging Market CDS Index 327.70 -1.72%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.69 -.10%

• 2-Year Swap Spread 8.75 -.75 basis point

• TED Spread 25.25 +2.0 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -40.25 -1.0 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.49 -.03%
• 3-Month T-Bill Yield .10% -1.0 basis point

• Yield Curve 142.0 unch.

• China Import Iron Ore Spot $47.74/Metric Tonne -.83%

• Citi US Economic Surprise Index 1.5 +1.5 points

• Citi Eurozone Economic Surprise Index 24.9 +2.0 points

• Citi Emerging Markets Economic Surprise Index -.1 +2.3 points

• 10-Year TIPS Spread 1.54 -2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 2.89 -.02

Overseas Futures:

• Nikkei 225 Futures: Indicating +297 open in Japan 
• China A50 Futures: Indicating -83 open in China

• DAX Futures: Indicating +78 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 50% Net Long