Stocks Rising into Final Hour on Less European/Emerging Markets/US High-Yield Debt Angst, Oil Bounce, Short-Covering, Energy/Financial Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 20.64 -9.19%

• Euro/Yen Carry Return Index 138.82 -.02%

• Emerging Markets Currency Volatility(VXY) 11.35 -2.32%

• S&P 500 Implied Correlation 57.93 -1.23%

• ISE Sentiment Index 185.0 +146.67%

• Total Put/Call .85 -20.56%

• NYSE Arms .75 +45.30% 

Credit Investor Angst:

• North American Investment Grade CDS Index 90.55 -2.31%

• America Energy Sector High-Yield CDS Index 1,672.0 +1.71%

• European Financial Sector CDS Index 77.25 -5.82%

• Western Europe Sovereign Debt CDS Index 17.93 +3.16%

• Asia Pacific Sovereign Debt CDS Index 73.60 -3.30%

• Emerging Market CDS Index 345.90 -4.50%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.36 unch.

• 2-Year Swap Spread 6.75 +.5 basis point

• TED Spread 26.25 -3.0 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -38.25 -1.5 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 69.43 +.37%
• 3-Month T-Bill Yield .24% +4.0 basis points

• Yield Curve 130.0 +3.0 basis points

• China Import Iron Ore Spot $39.36/Metric Tonne +.77%

• Citi US Economic Surprise Index -22.20 -1.5 points

• Citi Eurozone Economic Surprise Index 19.5 +.5 point

• Citi Emerging Markets Economic Surprise Index 16.40 -1.3 basis points

• 10-Year TIPS Spread 1.51 +2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) .95 -.21

Overseas Futures:

• Nikkei 225 Futures: Indicating +365 open in Japan 
• China A50 Futures: Indicating -183 open in China

• DAX Futures: Indicating +3 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 50% Net Long