Stocks Higher into Afternoon on Lower Long-Term Rates, Less European/Emerging Markets/US High-Yield Debt Angst, Short-Covering, Tech/Telecom Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 11.68 -4.3%

• Euro/Yen Carry Return Index 127.55 -.97%

• Emerging Markets Currency Volatility(VXY) 11.45 +.17%

• S&P 500 Implied Correlation 50.78 +.67%

• ISE Sentiment Index 108.0 +66.15%
  

• Total Put/Call 1.22 +34.07%

• NYSE Arms 1.80 +54.38%

Credit Investor Angst:

• North American Investment Grade CDS Index 67.59 -1.74%
  

• America Energy Sector High-Yield CDS Index 449.0 -.35%

• European Financial Sector CDS Index 95.06 +1.44%

• Western Europe Sovereign Debt CDS Index 20.0 -2.25%

• Asia Pacific Sovereign Debt CDS Index 37.55 +.82%

• Emerging Market CDS Index 245.47 -1.32%
  

• iBoxx Offshore RMB China Corporate High Yield Index 133.04 +.04%

• 2-Year Swap Spread 27.0 +1.25 basis points

• TED Spread 51.0 +1.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -58.75 -4.0 basis points
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 69.30 -.08%
• 3-Month T-Bill Yield .49% -1.0 basis point

• Yield Curve 132.0 -2.0 basis points
  

• China Import Iron Ore Spot $81.22/Metric Tonne -.33%

• Citi US Economic Surprise Index 23.2 +.3 point

• Citi Eurozone Economic Surprise Index 60.60 -2.7 basis points

• Citi Emerging Markets Economic Surprise Index 6.60 +1.0 points

• 10-Year TIPS Spread 1.89% unch.
• 29.8% chance of Fed rate hike at March 15 meeting, 42.2% chance at May 3 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +32 open in Japan 
• China A50 Futures: Indicating -18 open in China

• DAX Futures: Indicating -1 open in Germany

Portfolio: 

• Higher: On gains in my tech/retail sector longs and emerging markets shorts

• Disclosed Trades: None

• Market Exposure: 50% Net Long