Stocks Surging into Final Hour on Tax Reform Hopes, Economic Optimism, Short-Covering, Retail/Commodity Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Heavy

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 9.33 -.96%

• Euro/Yen Carry Return Index 138.19 +.21%

• Emerging Markets Currency Volatility(VXY) 7.50 -1.19%

• S&P 500 Implied Correlation 36.88 +.49%

• ISE Sentiment Index 168.0 +97.7%
  

• Total Put/Call .67 -31.6%

• NYSE Arms .53 -16.7%

Credit Investor Angst:

• North American Investment Grade CDS Index 49.64 -1.6%
  

• America Energy Sector High-Yield CDS Index 379.0 -.04%

• European Financial Sector CDS Index 46.03 -2.13%

• Western Europe Sovereign Debt CDS Index 3.48 +4.35%

• Asia Pacific Sovereign Debt CDS Index 13.50 -.52%

• Emerging Market CDS Index 122.15 -2.84%
  

• iBoxx Offshore RMB China Corporate High Yield Index 145.80 +.14%

• 2-Year Swap Spread 20.25 +2.0 basis points

• TED Spread 28.0 -.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -87.25 +11.75 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 73.59 +.51%
• 3-Month T-Bill Yield 1.34% +3.0 basis points
  

• Yield Curve 56.50 +4.5 basis points

• China Iron Ore Spot 516.0 CNY/100 Metric Tonnes +1.67%

• Citi US Economic Surprise Index 73.90 +1.7 points

• Citi Eurozone Economic Surprise Index 63.40 -6.9 basis points

• Citi Emerging Markets Economic Surprise Index -.3 -.8 point

• 10-Year TIPS Spread 1.91 +2.0 basis points
  
• 70.8% chance of Fed rate hike at March 21 meeting, 72.6% chance at May 2 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +114 open in Japan 
• China A50 Futures: Indicating +19 open in China

• DAX Futures: Indicating +5 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 100% Net Long