Stocks Higher into Afternoon on Seasonal Strength, Bargain-Hunting, Short-Covering, Healthcare/Gaming Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 19.31 -6.76%

• Euro/Yen Carry Return Index 138.17 +.41%

• Emerging Markets Currency Volatility(VXY) 11.46 +.35%

• S&P 500 Implied Correlation 60.53 -1.0%

• ISE Sentiment Index 43.0 -34.85%

• Total Put/Call .78 -22.77%

• NYSE Arms .97 -40.62% 

Credit Investor Angst:

• North American Investment Grade CDS Index 95.06 -.25%

• America Energy Sector High-Yield CDS Index 1,792.0 -.49%

• European Financial Sector CDS Index 78.20 +2.24%

• Western Europe Sovereign Debt CDS Index 17.97 +3.75%

• Asia Pacific Sovereign Debt CDS Index 74.58 +.17%

• Emerging Market CDS Index 360.18 +1.0%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.54 unch.

• 2-Year Swap Spread 14.5 +1.0 basis point

• TED Spread 42.0 +1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -29.0 -.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 69.34 +.1%
• 3-Month T-Bill Yield .16% -2.0 basis points

• Yield Curve 124.0 +1.0 basis point

• China Import Iron Ore Spot $40.46/Metric Tonne +.9%

• Citi US Economic Surprise Index -30.4 -6.5 points

• Citi Eurozone Economic Surprise Index 17.6 -1.1 points

• Citi Emerging Markets Economic Surprise Index 18.10 unch.

• 10-Year TIPS Spread 1.48 -2.0 basis points
• 69.4% chance of next Fed rate hike at June 15 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -76 open in Japan 
• China A50 Futures: Indicating -106 open in China

• DAX Futures: Indicating +39 open in Germany

Portfolio: 

• Slightly Lower: On losses in my retail sector longs and index hedges

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

• Market Exposure: Moved to 50% Net Long