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

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Around Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 21.8 -3.6%
• Bloomberg Global Risk On/Risk Off Index 2,802.0 +79.0 points

• Euro/Yen Carry Return Index 134.55 +.55%

• Emerging Markets Currency Volatility(VXY) 10.5 -.3%

• S&P 500 Implied Correlation 50.4 unch.

• ISE Sentiment Index 117.0 +11.0 points
  

• Total Put/Call .71 -1.4%

• NYSE Arms 1.15 +22.3%

Credit Investor Angst:

• North American Investment Grade CDS Index 54.48 -2.6%
  

• US Energy High-Yield OAS 471.97 -1.77%

• European Financial Sector CDS Index 55.45 -3.9%

• Italian/German 10Y Yld Spread 93.0 -7.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 61.67 -4.72%
  

• Emerging Market CDS Index 195.77 -4.66%
  

• iBoxx Offshore RMB China Corporate High Yield Index 186.79 +.02%

• 2-Year Swap Spread 9.75 +1.25 basis points

• TED Spread 14.75 -.5 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -5.0 +1.75 basis points
  
• MBS  5/10 Treasury Spread  71.25 +.75 basis point
  
• IHS Markit CMBX BBB- 6 75.0 -.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 61.65 +.67%
• 3-Month T-Bill Yield .03% unch.
  

• Yield Curve 137.0 -4.0 basis points
  

• China Iron Ore Spot 164.30 USD/Metric Tonne +6.24%

• Citi US Economic Surprise Index 71.30 -8.7 points

• Citi Eurozone Economic Surprise Index 118.3 -.6 point
  

• Citi Emerging Markets Economic Surprise Index 51.2 +1.7 points

• 10-Year TIPS Spread 2.28 +7.0 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 -36 open in Japan 
• China A50 Futures: Indicating +142 open in China

• DAX Futures: Indicating -7 open in Germany

Portfolio:

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my emerging market shorts
  

• Market Exposure: Moved to 100% Net Long