Stocks Higher into Final Hour on Central Bank Hopes, Less European/US High-Yield Debt Angst, Seasonal Optimism, Healthcare/Gaming Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 15.05 -6.7%

• Euro/Yen Carry Return Index 136.54 +.5%

• Emerging Markets Currency Volatility(VXY) 10.66 -1.30%

• S&P 500 Implied Correlation 55.55 -3.94%

• ISE Sentiment Index 135.0 +16.38%

• Total Put/Call 1.05 -7.89%

• NYSE Arms .81 -31.45% 

Credit Investor Angst:

• North American Investment Grade CDS Index 81.53 -3.07%

• America Energy Sector High-Yield CDS Index 1,307.0 -2.36%

• European Financial Sector CDS Index 67.60 -.72%

• Western Europe Sovereign Debt CDS Index 17.03 -4.59%

• Asia Pacific Sovereign Debt CDS Index 67.74 -.67%

• Emerging Market CDS Index 326.08 -.87%
  

• iBoxx Offshore RMB China Corporate High Yield Index 124.11 -.01%

• 2-Year Swap Spread 6.25 unch.

• TED Spread 22.0 -3.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -52.25 +3.0 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.38 +.31%
• 3-Month T-Bill Yield .20% +3.0 basis points

• Yield Curve 124.0 -4.0 basis points

• China Import Iron Ore Spot $42.24/Metric Tonne -1.70%

• Citi US Economic Surprise Index -20.20 -5.8 points

• Citi Eurozone Economic Surprise Index 28.90 +5.8 points

• Citi Emerging Markets Economic Surprise Index 9.9 +.6 point

• 10-Year TIPS Spread 1.60 -2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 1.60 -.18

Overseas Futures:

• Nikkei 225 Futures: Indicating -47 open in Japan 
• China A50 Futures: Indicating -89 open in China

• DAX Futures: Indicating +2 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 50% Net Long