Stocks Surging into Final Hour on Diminished Fed Rate Hike Concerns, Yen Weakness, Short-Covering, Utility/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Slightly Above Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 15.73 -8.55%

• Euro/Yen Carry Return Index 143.78 +.57%

• Emerging Markets Currency Volatility(VXY) 8.13 +2.65%

• S&P 500 Implied Correlation 50.52 -14.15%

• ISE Sentiment Index 87.0 +11.54%

• Total Put/Call 1.03 +4.04%

• NYSE Arms 1.47 +16.67% 

Credit Investor Angst:

• North American Investment Grade CDS Index 66.75 -4.26%

• European Financial Sector CDS Index 66.08 -.28%

• Western Europe Sovereign Debt CDS Index 26.29 -2.88%
• Asia Pacific Sovereign Debt CDS Index 69.90 +3.07%

• Emerging Market CDS Index 254.28 -4.02%

• China Blended Corporate Spread Index 319.36 n/a
• 2-Year Swap Spread 26.0 -.75 basis point

• TED Spread 22.75 +.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -9.0 unch.

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 188.0 +4.0 basis points

• China Import Iron Ore Spot $77.50/Metric Tonne n/a

• Citi US Economic Surprise Index 17.80 -.1 point

• Citi Emerging Markets Economic Surprise Index -22.40 -.1 point

• 10-Year TIPS Spread 1.96 +4.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating +110 open in Japan

• DAX Futures: Indicating +95 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long