Stocks Slightly Higher into Afternoon on Less European/Emerging Markets Debt Angst, Seasonal Strength, Technical Buying, Retail/Telecom Sector Strength

 Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Light

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 13.3 +5.1%

• Euro/Yen Carry Return Index 127.06 +.63%

• Emerging Markets Currency Volatility(VXY) 6.50 +.31%

• S&P 500 Implied Correlation 42.40 -4.95%

• ISE Sentiment Index 89.0 +20
  

• Total Put/Call .84 +6.3%

• NYSE Arms 1.48 +92.2%

Credit Investor Angst:

• North American Investment Grade CDS Index 44.04 -.37%
  

• America Energy Sector High-Yield CDS Index 546.0 -.33%

• European Financial Sector CDS Index 52.18 -1.82%

• Italian/German 10Y Yld Spread 163.0 -4.25 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 53.13 +.43%
  

• Emerging Market CDS Index 174.79 -2.75%
  

• iBoxx Offshore RMB China Corporate High Yield Index 167.34 +.16%

• 2-Year Swap Spread 9.25 +1.0 basis point

• TED Spread 40.5 +1.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -.75 +12.25 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 66.56 +.19%
• 3-Month T-Bill Yield 1.56% -1.0 basis point

• Yield Curve .27 -1.0 basis point

• China Iron Ore Spot 90.60 USD/Metric Tonne +.59%

• Citi US Economic Surprise Index -8.3 +1.0 point

• Citi Eurozone Economic Surprise Index 27.90 +.4 point

• Citi Emerging Markets Economic Surprise Index -15.9 +.8 basis point

• 10-Year TIPS Spread 1.76 unch.
• 6.0% chance of Fed rate cut at March 18th meeting, 14.8% chance of cut at April 29th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -22 open in Japan 
• China A50 Futures: Indicating +22 open in China

• DAX Futures: Indicating -29 open in Germany

Portfolio:

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

• Disclosed Trades: None

• Market Exposure: 100% Net Long