Stocks Reversing Slightly Higher into Final Hour on Economic Optimism, Less European/Emerging Markets/US High-Yield Debt Angst, Oil Gain, Energy/Drug Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Above Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 11.80 +.51%

• Euro/Yen Carry Return Index 124.47 +.39%

• Emerging Markets Currency Volatility(VXY) 9.73 -.21%

• S&P 500 Implied Correlation 46.07 +1.99%

• ISE Sentiment Index 105.0 +66.7%
  

• Total Put/Call .81 -8.99%

• NYSE Arms 1.51 +7.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 62.0 -.85%
  

• America Energy Sector High-Yield CDS Index 359.0 -2.69%

• European Financial Sector CDS Index 93.91 +.01%

• Western Europe Sovereign Debt CDS Index 21.02 -7.11%

• Asia Pacific Sovereign Debt CDS Index 25.09 -1.92%

• Emerging Market CDS Index 213.81 -1.59%
  

• iBoxx Offshore RMB China Corporate High Yield Index 134.83 +.10%

• 2-Year Swap Spread 35.25 +.75 basis point

• TED Spread 54.5 +2.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -27.75 +.5 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 71.88 +.36%
• 3-Month T-Bill Yield .51% -1.0 basis point

• Yield Curve 119.0 unch.
  

• China Import Iron Ore Spot $91.34/Metric Tonne -3.14%

• Citi US Economic Surprise Index 45.70 -1.7 points

• Citi Eurozone Economic Surprise Index 70.70 -1.2 points

• Citi Emerging Markets Economic Surprise Index 46.40 -1.2 points

• 10-Year TIPS Spread 2.04 -1.0 basis point
• 62.7% chance of Fed rate hike at May 3 meeting, 75.4% chance at June 14 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -51 open in Japan 
• China A50 Futures: Indicating +5 open in China

• DAX Futures: Indicating +21 open in Germany

Portfolio: 

• Slightly Lower: On losses in my in my biotech/retail sector longs 

• Disclosed Trades: None

• Market Exposure: 100% Net Long