Stocks Surging into Afternoon on Diminished Global Growth Fears, Central Bank Hopes, Seasonal Optimism, Financial/Homebuilding Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 15.44 -14.74%

• Euro/Yen Carry Return Index 139.76 -.27%

• Emerging Markets Currency Volatility(VXY) 10.64 unch.

• S&P 500 Implied Correlation 55.70 -3.60%

• ISE Sentiment Index 141.0 +78.48%

• Total Put/Call .86 -22.52%

• NYSE Arms 1.15 +52.40% 

Credit Investor Angst:

• North American Investment Grade CDS Index 81.95 -1.10%

• America Energy Sector High-Yield CDS Index 1,334.0 +3.27%

• European Financial Sector CDS Index 71.50 +.53%

• Western Europe Sovereign Debt CDS Index 17.74 +2.16%

• Asia Pacific Sovereign Debt CDS Index 68.86 -.58%

• Emerging Market CDS Index 339.27 -.31%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.87 -.03%

• 2-Year Swap Spread 10.0 +2.0 basis points

• TED Spread 23.75 +2.0 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -35.25 -1.0 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.61 -.15%
• 3-Month T-Bill Yield .21% +1.0 basis point

• Yield Curve 133.0 -4.0 basis points

• China Import Iron Ore Spot $40.03/Metric Tonne -1.77%

• Citi US Economic Surprise Index -25.80 -4.0 points

• Citi Eurozone Economic Surprise Index 19.10 +1.4 points

• Citi Emerging Markets Economic Surprise Index 12.1 +1.9 points

• 10-Year TIPS Spread 1.63 -1.0 basis point
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 1.61 -.03

Overseas Futures:

• Nikkei 225 Futures: Indicating +171 open in Japan 
• China A50 Futures: Indicating -144 open in China

• DAX Futures: Indicating +89 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long