Stocks Slightly Higher into Final Hour on Diminished Brexit Fears, Less European/Emerging Markets/US High-Yield Debt Angst, Technical Buying, Biotech/Healthcare Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Mixed
  

• Volume: Light

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 19.78 +7.03%

• Euro/Yen Carry Return Index 123.27 +.14%

• Emerging Markets Currency Volatility(VXY) 10.63 +.38%

• S&P 500 Implied Correlation 58.32 +.47%

• ISE Sentiment Index 111.0 -11.9%
  

• Total Put/Call .93 -7.92%

• NYSE Arms .90 +11.79% 

Credit Investor Angst:

• North American Investment Grade CDS Index 79.01 +.67%
  

• America Energy Sector High-Yield CDS Index 779.0 -1.1%

• European Financial Sector CDS Index 99.0 -4.7%

• Western Europe Sovereign Debt CDS Index 28.92 -1.0%

• Asia Pacific Sovereign Debt CDS Index 51.57 -1.15%

• Emerging Market CDS Index 281.82 -.74%
  

• iBoxx Offshore RMB China Corporate High Yield Index 129.93 +.20%

• 2-Year Swap Spread 13.0 unch.
  

• TED Spread 37.75 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -39.0 -4.25 basis points
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 72.43 +.34%
• 3-Month T-Bill Yield .27% unch.

• Yield Curve 94.0 unch.
  

• China Import Iron Ore Spot $52.29/Metric Tonne +2.79%

• Citi US Economic Surprise Index -16.0 unch.

• Citi Eurozone Economic Surprise Index -1.30 -.1 point

• Citi Emerging Markets Economic Surprise Index -5.8 -.5 point

• 10-Year TIPS Spread 1.48% +1.0 basis point
  
• 24.8% chance of Fed rate hike at Sept. 21 meeting, 28.0% chance at Nov. 2 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -10 open in Japan 
• China A50 Futures: Indicating -45 open in China

• DAX Futures: Indicating -4 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 50% Net Long