Stocks Surging into Final Hour on Central Bank Hopes, Less European/Emerging Markets/US High-Yield Debt Angst, Oil Bounce, Commodity/Gaming Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Around Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 19.41 -7.31%

• Euro/Yen Carry Return Index 140.77 +.23%

• Emerging Markets Currency Volatility(VXY) 11.70 -.85%

• S&P 500 Implied Correlation 60.36 -1.69%

• ISE Sentiment Index 123.0 +55.70%

• Total Put/Call 1.03 -5.50%

• NYSE Arms .38 -34.21% 

Credit Investor Angst:

• North American Investment Grade CDS Index 88.26 -5.95%

• America Energy Sector High-Yield CDS Index 1,099.0 -1.41%

• European Financial Sector CDS Index 87.54 -7.34%

• Western Europe Sovereign Debt CDS Index 21.30 +.45%

• Asia Pacific Sovereign Debt CDS Index 84.06 -6.87%

• Emerging Market CDS Index 347.69 -6.20%
  

• iBoxx Offshore RMB China Corporates High Yield Index 119.86 +.14%

• 2-Year Swap Spread 13.0 +.5 basis point

• TED Spread 33.75 -.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -25.50 +4.0 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 71.44 +.71%
• 3-Month T-Bill Yield -.01% unch.

• Yield Curve 145.0 +4.0 basis points

• China Import Iron Ore Spot $53.14/Metric Tonne n/a

• Citi US Economic Surprise Index -29.70 unch.

• Citi Eurozone Economic Surprise Index 18.70 -12.6 points

• Citi Emerging Markets Economic Surprise Index -20.30 unch.

• 10-Year TIPS Spread 1.51 +2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 6.97 +1.73

Overseas Futures:

• Nikkei 225 Futures: Indicating +490 open in Japan 
• China A50 Futures: Indicating n/a open in China

• DAX Futures: Indicating +60 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long