Stocks Rising into Final Hour on Less European Debt Angst, Earnings Optimism, Short-Covering, Biotech/Tech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 11.79 -1.5%

• Euro/Yen Carry Return Index 122.78 +.49%

• Emerging Markets Currency Volatility(VXY) 10.10 +.90%

• S&P 500 Implied Correlation 48.71 +2.12%

• ISE Sentiment Index 97.0 +18.3%
  

• Total Put/Call .83 -11.7%

• NYSE Arms 1.18 +5.61% 

Credit Investor Angst:

• North American Investment Grade CDS Index 70.29 -1.35%
  

• America Energy Sector High-Yield CDS Index 725.0 +.40%

• European Financial Sector CDS Index 93.44 -5.62%

• Western Europe Sovereign Debt CDS Index 26.49 -1.12%

• Asia Pacific Sovereign Debt CDS Index 47.46 -1.09%

• Emerging Market CDS Index 253.56 +.13%
  

• iBoxx Offshore RMB China Corporate High Yield Index 130.91 +.06%

• 2-Year Swap Spread 22.50 +1.5 basis points
  

• TED Spread 38.0 -1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -48.25 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 72.33 -.22%
• 3-Month T-Bill Yield .32% +1.0 basis point

• Yield Curve 87.0 unch.
  

• China Import Iron Ore Spot $55.75/Metric Tonne -.48%

• Citi US Economic Surprise Index 28.60 +.7 point

• Citi Eurozone Economic Surprise Index -2.1 +.7 point

• Citi Emerging Markets Economic Surprise Index -10.70 unch.

• 10-Year TIPS Spread 1.49% +1.0 basis point
• 24.6% chance of Fed rate hike at Sept. 21 meeting, 26.2% chance at Nov. 2 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +228 open in Japan 
• China A50 Futures: Indicating +21 open in China

• DAX Futures: Indicating -21 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long