Stocks Rising into Afternoon on Economic Optimism, Stable Long-Term Rates, Less European/Emerging Market/US High-Yld Debt Angst, Tech/Alt Energy Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 19.1 -2.5%
• Bloomberg Global Risk On/Risk Off Index 2,913.0 -77.0 points

• Euro/Yen Carry Return Index 134.42 +.51%

• Emerging Markets Currency Volatility(VXY) 11.1 -2.1%

• S&P 500 Implied Correlation 49.8 +3.2%

• ISE Sentiment Index 105.0 -12.0 points
  

• Total Put/Call .76 -1.3%

• NYSE Arms 1.43 -85.7%

Credit Investor Angst:

• North American Investment Grade CDS Index 54.36 -3.75%
  

• US Energy High-Yield OAS 478.70 -.53%

• European Financial Sector CDS Index 59.82 -2.8%

• Italian/German 10Y Yld Spread 96.0 +3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 63.99 +.37%
  

• Emerging Market CDS Index 185.63 -2.91%
  

• iBoxx Offshore RMB China Corporate High Yield Index 188.82 +.04%

• 2-Year Swap Spread 13.5 +3.75 basis points

• TED Spread 18.75 +4.0 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -3.5 +1.5 basis points
  
• MBS  5/10 Treasury Spread  72.25 +1.0 basis point
  
• IHS Markit CMBX BBB- 6 73.25 -1.75 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 60.11 +.70%
• 3-Month T-Bill Yield .02% -1.0 basis point
  

• Yield Curve 159.0 -1.0 basis point
  

• China Iron Ore Spot 157.50 USD/Metric Tonne -3.1%

• Citi US Economic Surprise Index 28.10 -.2 point

• Citi Eurozone Economic Surprise Index 173.0 -9.8 points
  

• Citi Emerging Markets Economic Surprise Index 29.0 +2.0 points

• 10-Year TIPS Spread 2.37 +2.0 basis points
• 100.0% chance of no change at April 28th meeting, 100.0% chance of no change at June 16th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +262 open in Japan 
• China A50 Futures: Indicating +31 open in China

• DAX Futures: Indicating +45 open in Germany

Portfolio:

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  

• Market Exposure: Moved to 100% Net Long