Stocks Slightly Higher into Final Hour on Less Emerging Markets Debt Angst, Short-Covering, Technical Buying, Biotech/Retail Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: About Even
  

• Sector Performance: Mixed
  

• Volume: Light

• Market Leading Stocks: Mixed
  

Equity Investor Angst:

• Volatility(VIX) 13.4 +1.4%

• Euro/Yen Carry Return Index 135.87 +.12%

• Emerging Markets Currency Volatility(VXY) 8.51 -.58%

• S&P 500 Implied Correlation 35.99 +.87%

• ISE Sentiment Index 128.0 -9.86%
  

• Total Put/Call .88 +.10%

• NYSE Arms 1.0 +38.31%

Credit Investor Angst:

• North American Investment Grade CDS Index 58.85 -1.79%
  

• America Energy Sector High-Yield CDS Index 369.0 -.22%

• European Financial Sector CDS Index 58.23 -2.52%

• Italian/German 10Y Yld Spread 131.25 -6.5 basis points
  

• Asia Pacific Sovereign Debt CDS Index 12.08 -3.13%

• Emerging Market CDS Index 154.65 +3.1%
  

• iBoxx Offshore RMB China Corporate High Yield Index 149.40 +.04%

• 2-Year Swap Spread 22.25 -2.25 basis points

• TED Spread 45.5 -1.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -2.0 -.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 72.39 -.27%
• 3-Month T-Bill Yield 1.90% +2.0 basis points
  

• Yield Curve 43.75 +.25 basis point

• China Iron Ore Spot 67.73 USD/Metric Tonne +.77%

• Citi US Economic Surprise Index 21.4 +.2 point

• Citi Eurozone Economic Surprise Index -97.90 +1.0 point

• Citi Emerging Markets Economic Surprise Index -.2 +.5 point

• 10-Year TIPS Spread 2.17 -1.0 basis point
  
• 100.0% chance of Fed rate hike at August 1 meeting, 100.0% chance at September 26 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -48  open in Japan 
• China A50 Futures: Indicating +44 open in China

• DAX Futures: Indicating -9 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 75% Net Long