Stocks Higher into Final Hour on Lower Long-Term Rates, Less Emerging Market/US High-Yield Debt Angst, Bargain-Hunting, Tech/Biotech Sector Strength

 Broad Equity Market Tone:

• Advance/Decline Line: Modestly HIgher
  

• Sector Performance: Mixed
  

• Volume: Heavy

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 25.4 +1.9%

• Euro/Yen Carry Return Index 134.63 -.45%

• Emerging Markets Currency Volatility(VXY) 10.49 -2.15%

• S&P 500 Implied Correlation 44.07 +9.17%

• ISE Sentiment Index 84.0 +35.5%
  

• Total Put/Call 1.16 -4.1%

• NYSE Arms .98 -29.7%

Credit Investor Angst:

• North American Investment Grade CDS Index 64.64 -2.24%
  

• America Energy Sector High-Yield CDS Index 402.0 -.57%

• European Financial Sector CDS Index 92.87 +.01%

• Italian/German 10Y Yld Spread 308.0 +3.5 basis points
  

• Asia Pacific Sovereign Debt CDS Index 9.80 -3.11%

• Emerging Market CDS Index 206.54 -.44%
  

• iBoxx Offshore RMB China Corporate High Yield Index 150.32 -.15%

• 2-Year Swap Spread 19.0 -.5 basis point

• TED Spread 17.0 +1.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -47.25 -4.0 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 66.56 +.12%
• 3-Month T-Bill Yield 2.26% unch.

• Yield Curve 30.0 +.25 basis point

• China Iron Ore Spot 69.75 USD/Metric Tonne -.14%

• Citi US Economic Surprise Index -1.9 -1.2 points

• Citi Eurozone Economic Surprise Index -24.8 +3.0 points

• Citi Emerging Markets Economic Surprise Index -2.0 +6.1 points

• 10-Year TIPS Spread 2.12 unch.
• 76.2% chance of Fed rate hike at Dec. 19th meeting, 77.1% chance at Jan. 30th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -314 open in Japan 
• China A50 Futures: Indicating -29 open in China

• DAX Futures: Indicating -62 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 50% Net Long