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

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Every Sector Rising
  

• Volume: Light

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 15.54 -6.39%

• Euro/Yen Carry Return Index 137.80 -.60%

• Emerging Markets Currency Volatility(VXY) 11.32 -.44%

• S&P 500 Implied Correlation 57.06 -1.69%

• ISE Sentiment Index 129.0 +51.7%

• Total Put/Call .76 -15.6%

• NYSE Arms .47 -20.53% 

Credit Investor Angst:

• North American Investment Grade CDS Index 90.40 -2.55%

• America Energy Sector High-Yield CDS Index 1,715.0 -2.85%

• European Financial Sector CDS Index 73.25 -3.94%

• Western Europe Sovereign Debt CDS Index 17.39 -1.33%

• Asia Pacific Sovereign Debt CDS Index 73.76 -1.16%

• Emerging Market CDS Index 352.57 -1.80%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.64 +.04%

• 2-Year Swap Spread 13.75 -.5 basis point

• TED Spread 39.0 -2.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -25.25 +6.25 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 69.66 +.35%
• 3-Month T-Bill Yield .19% +1.0 basis point

• Yield Curve 128.0 +1.0 basis point

• China Import Iron Ore Spot $40.82/Metric Tonne +.05%

• Citi US Economic Surprise Index -32.8 -3.6 points

• Citi Eurozone Economic Surprise Index 16.3 -1.3 points

• Citi Emerging Markets Economic Surprise Index 16.20 +.4 point

• 10-Year TIPS Spread 1.54% +5.0 basis points
• 55.6% chance of next Fed rate hike at April 27 meeting, 72.4% chance at June 15 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +214 open in Japan 
• China A50 Futures: Indicating -46 open in China

• DAX Futures: Indicating +32 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long