Stocks Slightly Higher into Final Hour on Less Emerging Markets/US High-Yield Debt Angst, Central Bank Hopes, Bargain-Hunting, REIT/Defense Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Sightly Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 19.60 -5.31%

• Euro/Yen Carry Return Index 133.63 -1.18%

• Emerging Markets Currency Volatility(VXY) 11.28 -3.18%

• S&P 500 Implied Correlation 59.65 -1.89%

• ISE Sentiment Index 79.0 -2.47%

• Total Put/Call 1.0 -6.54%

• NYSE Arms 1.60 +18.51% 

Credit Investor Angst:

• North American Investment Grade CDS Index 90.35 -.08%

• America Energy Sector High-Yield CDS Index 1,609.0 -2.9%

• European Financial Sector CDS Index 77.13 -3.14%

• Western Europe Sovereign Debt CDS Index 16.62 +1.39%

• Asia Pacific Sovereign Debt CDS Index 73.55 -2.72%

• Emerging Market CDS Index 354.48 -2.36%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.9 +.03%

• 2-Year Swap Spread 11.5 -.75 basis point

• TED Spread 41.0 -4.0 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -20.25 -.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 68.55 -.12%

• 3-Month T-Bill Yield .20% +4.0 basis points

• Yield Curve 122.0 +1.0 basis point

• China Import Iron Ore Spot $43.11/Metric Tonne -2.84%

• Citi US Economic Surprise Index -34.8 -.4 point

• Citi Eurozone Economic Surprise Index 17.2 -3.9 points

• Citi Emerging Markets Economic Surprise Index 6.10 -2.8 points

• 10-Year TIPS Spread 1.58% unch.

• 48.9% chance of next Fed rate hike at March 16 meeting, 54.7% chance at April 27 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +1 open in Japan 

• China A50 Futures: Indicating -205 open in China

• DAX Futures: Indicating +19 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 25% Net Long