Stocks Rising into Final Hour on Less European/Emerging Markets/US High-Yield Debt Angst, Yen Weakness, Short-Covering, Tech/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Around Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 15.5 -4.8%

• Euro/Yen Carry Return Index 129.20 +.38%

• Emerging Markets Currency Volatility(VXY) 10.80 -1.46%

• S&P 500 Implied Correlation 56.77 +.71%

• ISE Sentiment Index 87.0 +35.9%

• Total Put/Call 1.03 -24.3%

• NYSE Arms 1.67 +132.2% 

Credit Investor Angst:

• North American Investment Grade CDS Index 84.44 -.79%
  

• America Energy Sector High-Yield CDS Index 982.0 +.12%

• European Financial Sector CDS Index 96.87 -3.86%

• Western Europe Sovereign Debt CDS Index 26.11 +.60%

• Asia Pacific Sovereign Debt CDS Index 53.6 -3.44%

• Emerging Market CDS Index 304.03 -.16%
  

• iBoxx Offshore RMB China Corporate High Yield Index 128.04 -.04%

• 2-Year Swap Spread 13.50 unch.
  

• TED Spread 34.0 +1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -26.25 +.5 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.79 +.21%
• 3-Month T-Bill Yield .31% +1.0 basis point

• Yield Curve 96.0 unch.
  

• China Import Iron Ore Spot $54.89/Metric Tonne +2.66%

• Citi US Economic Surprise Index -30.80 -.2 point

• Citi Eurozone Economic Surprise Index .8 +2.2 points

• Citi Emerging Markets Economic Surprise Index -1.8 +.1 point

• 10-Year TIPS Spread 1.60% -1.0 basis point
  
• 48.2% chance of Fed rate hike at July 27 meeting, 59.6% chance at September 21 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +3 open in Japan 
• China A50 Futures: Indicating +1 open in China

• DAX Futures: Indicating -27 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 50% Net Long