Stocks Rising into Final Hour on Central Bank Hopes, Oil Bounce, Buyout Speculation, Biotech/Tech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Mixed
  

• Volume: Slightly Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 24.91 -5.03%

• Euro/Yen Carry Return Index 142.16 +.73%

• Emerging Markets Currency Volatility(VXY) 12.86 +3.71%

• S&P 500 Implied Correlation 64.87 +.19%

• ISE Sentiment Index 76.0 +8.57%

• Total Put/Call 1.15 +12.75%

• NYSE Arms .77 -62.90% 

Credit Investor Angst:

• North American Investment Grade CDS Index 80.07 -1.09%

• America Energy Sector High-Yield CDS Index 1,897.0 -.41%

• European Financial Sector CDS Index 81.47 +2.42%

• Western Europe Sovereign Debt CDS Index 21.09 +.67%

• Asia Pacific Sovereign Debt CDS Index 86.14 +3.04%

• Emerging Market CDS Index 352.02 -.18%
  

• iBoxx Offshore RMB China Corporates High Yield Index 117.25 +.26%

• 2-Year Swap Spread 13.25 +1.5 basis points

• TED Spread 31.25 +3.0 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -23.25 +.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .02% unch.

• Yield Curve 149.0 +5.0 basis points

• China Import Iron Ore Spot $59.01/Metric Tonne +1.43%

• Citi US Economic Surprise Index -16.6 +.3 point

• Citi Eurozone Economic Surprise Index 23.0 +.3 point

• Citi Emerging Markets Economic Surprise Index -23.5 +2.1 points

• 10-Year TIPS Spread 1.60 +5.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 3.98 -.06

Overseas Futures:

• Nikkei 225 Futures: Indicating -124 open in Japan 
• China A50 Futures: Indicating -166 open in China

• DAX Futures: Indicating +7 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 50% Net Long