Stocks Slightly Higher into Final Hour on Central Bank Hopes, Less Emerging Markets Debt Angst, Bargain-Hunting, Road&Rail/Homebuilder Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Above Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 23.35 -4.69%

• Euro/Yen Carry Return Index 140.10 +.09%

• Emerging Markets Currency Volatility(VXY) 12.20 -1.61%

• S&P 500 Implied Correlation 62.69 -4.0%

• ISE Sentiment Index 100.0 +8.7%

• Total Put/Call 1.05 +25.0%

• NYSE Arms .96 +122.54% 

Credit Investor Angst:

• North American Investment Grade CDS Index 95.21 +1.72%

• America Energy Sector High-Yield CDS Index 1,085.0 -1.41%

• European Financial Sector CDS Index 95.62 +1.38%

• Western Europe Sovereign Debt CDS Index 21.17 -1.40%

• Asia Pacific Sovereign Debt CDS Index 90.03 -.68%

• Emerging Market CDS Index 382.11 -1.0%
  

• iBoxx Offshore RMB China Corporates High Yield Index 119.65 +.02%

• 2-Year Swap Spread 12.5 +.75 basis point

• TED Spread 34.5 +1.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -29.50 -1.5 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.63 -.08%
• 3-Month T-Bill Yield -.02% -1.0 basis point

• Yield Curve 139.0 -3.0 basis points

• China Import Iron Ore Spot $56.04/Metric Tonne -.50%

• Citi US Economic Surprise Index -22.30 -1.8 points

• Citi Eurozone Economic Surprise Index 31.60 -1.4 points

• Citi Emerging Markets Economic Surprise Index -20.60 +4.6 points

• 10-Year TIPS Spread 1.46 +4.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 5.55 -.30

Overseas Futures:

• Nikkei 225 Futures: Indicating -32 open in Japan 
• China A50 Futures: Indicating n/a open in China

• DAX Futures: Indicating +19 open in Germany

Portfolio: 

• Slightly Lower: On losses in my tech/retail sector longs

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 50% Net Long