Stocks Slightly Higher into Final Hour on Central Bank Hopes, Buyout Speculation, Oil Bounce, Healthcare/REIT Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 16.32 +1.68%

• Euro/Yen Carry Return Index 141.95 +.46%

• Emerging Markets Currency Volatility(VXY) 11.0 -.09%

• S&P 500 Implied Correlation 63.60 +3.70%

• ISE Sentiment Index 88.0 +11.39%

• Total Put/Call .83 -24.55%

• NYSE Arms 1.17 +1.19 +29.88% 

Credit Investor Angst:

• North American Investment Grade CDS Index 82.43 -.80%

• America Energy Sector High-Yield CDS Index 1,048.0 +.29%

• European Financial Sector CDS Index 77.75 -2.05%

• Western Europe Sovereign Debt CDS Index 21.24 -1.69%

• Asia Pacific Sovereign Debt CDS Index 74.58 -1.01%

• Emerging Market CDS Index 327.82 -.37%
  

• iBoxx Offshore RMB China Corporates High Yield Index 121.51 +.22%

• 2-Year Swap Spread 12.0 +.25 basis point

• TED Spread 32.25 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -23.5 -1.25 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 73.39 -.29%
• 3-Month T-Bill Yield -.01% -1.0 basis point

• Yield Curve 142.0 -1.0 basis point

• China Import Iron Ore Spot $53.74/Metric Tonne n/a

• Citi US Economic Surprise Index -14.80 +3.7 points

• Citi Eurozone Economic Surprise Index 6.1 +.1 point

• Citi Emerging Markets Economic Surprise Index -16.70 +.4 point

• 10-Year TIPS Spread 1.49 -2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 6.89 -.68

Overseas Futures:

• Nikkei 225 Futures: Indicating +68 open in Japan 
• China A50 Futures: Indicating +110 open in China

• DAX Futures: Indicating -8 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 50% Net Long