Stocks Slightly Higher into Final Hour on Less European/Emerging Markets/US High-Yield Debt Angst, Oil Bounce, Yen Weakness, Biotech/Airline Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 13.92 -.71%

• Euro/Yen Carry Return Index 131.5 +.11%

• Emerging Markets Currency Volatility(VXY) 11.42 -.35%

• S&P 500 Implied Correlation 58.98 -.25%

• ISE Sentiment Index 97.0 -40.8%

• Total Put/Call .95 +21.79%

• NYSE Arms .93 -17.0% 

Credit Investor Angst:

• North American Investment Grade CDS Index 77.15 -9.03% (new series)

• America Energy Sector High-Yield CDS Index 1,548.0 -6.11%

• European Financial Sector CDS Index 86.88 +8.26%

• Western Europe Sovereign Debt CDS Index 25.93 -7.82%

• Asia Pacific Sovereign Debt CDS Index 56.91 -5.76%

• Emerging Market CDS Index 280.42 -6.42%
  

• iBoxx Offshore RMB China Corporate High Yield Index 126.48 +.10%

• 2-Year Swap Spread 8.5 +.25 basis point
  

• TED Spread 33.50 -2.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -21.0 -1.25 basis points
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 71.69 +.04%
• 3-Month T-Bill Yield .30% +2.0 basis points

• Yield Curve 105.0 +1.0 basis point
  

• China Import Iron Ore Spot $58.82/Metric Tonne +2.30%

• Citi US Economic Surprise Index -2.90 -2.7 points

• Citi Eurozone Economic Surprise Index -44.90 +1.0 point

• Citi Emerging Markets Economic Surprise Index -18.80 -.1 point

• 10-Year TIPS Spread 1.65% +2.0 basis points
• 42.4% chance of Fed rate hike at June 15 meeting, 50.5% chance at July 27 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +90 open in Japan 
• China A50 Futures: Indicating +55 open in China

• DAX Futures: Indicating +46 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 50% Net Long