Stocks Surging into Final Hour on Central Bank Hopes, Quarter-End Window-Dressing, Short-Covering, Biotech/Tech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 25.14 -8.3%

• Euro/Yen Carry Return Index 139.91 -.58%

• Emerging Markets Currency Volatility(VXY) 12.41 -3.87%

• S&P 500 Implied Correlation 64.39 +1.13%

• ISE Sentiment Index 60.0 -14.29%

• Total Put/Call .77 -43.48%

• NYSE Arms .53 -11.06% 

Credit Investor Angst:

• North American Investment Grade CDS Index 92.88 -.50%

• America Energy Sector High-Yield CDS Index 1,095.0 -1.35%

• European Financial Sector CDS Index 95.62 -1.16%

• Western Europe Sovereign Debt CDS Index 21.47 -3.37%

• Asia Pacific Sovereign Debt CDS Index 90.65 -1.96%

• Emerging Market CDS Index 386.53 -3.99%
  

• iBoxx Offshore RMB China Corporates High Yield Index 119.62 +.02%

• 2-Year Swap Spread 11.75 +1.25 basis points

• TED Spread 32.75 +.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -28.0 -2.25 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.64 +.51%
• 3-Month T-Bill Yield -.01% -1.0 basis point

• Yield Curve 142.0 +1.0 basis point

• China Import Iron Ore Spot $56.32/Metric Tonne +.48%

• Citi US Economic Surprise Index -20.50 -.1 point

• Citi Eurozone Economic Surprise Index 33.0 -2.8 points

• Citi Emerging Markets Economic Surprise Index -25.2 +.4 point

• 10-Year TIPS Spread 1.42 +2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 5.85 +.26

Overseas Futures:

• Nikkei 225 Futures: Indicating +152 open in Japan 
• China A50 Futures: Indicating -53 open in China

• DAX Futures: Indicating -28 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long