Stocks Surging into Final Hour on Less European/US High-Yield Debt Angst, Short-Covering, Seasonal Strength, Alt Energy/Utility Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Slightly Above Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 17.38 -17.04%

• Euro/Yen Carry Return Index 139.66 +.50%

• Emerging Markets Currency Volatility(VXY) 11.34 -.09%

• S&P 500 Implied Correlation 56.15 -3.17%

• ISE Sentiment Index 93.0 -50.27%

• Total Put/Call .77 -12.5%

• NYSE Arms 1.03 +38.28% 

Credit Investor Angst:

• North American Investment Grade CDS Index 89.44 -1.43%

• America Energy Sector High-Yield CDS Index 1,680.0 +.58%

• European Financial Sector CDS Index 75.50 -2.27%

• Western Europe Sovereign Debt CDS Index 17.19 -4.13%

• Asia Pacific Sovereign Debt CDS Index 73.09 +.01%

• Emerging Market CDS Index 350.28 +.97%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.39 +.02%

• 2-Year Swap Spread 6.5 -.25 basis point

• TED Spread 26.25 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -38.5 -.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 69.47 +.04%
• 3-Month T-Bill Yield .25% +1.0 basis point

• Yield Curve 128.0 -2.0 basis points

• China Import Iron Ore Spot $39.18/Metric Tonne -.46%

• Citi US Economic Surprise Index -23.0 -.8 point

• Citi Eurozone Economic Surprise Index 20.4 +.9 point

• Citi Emerging Markets Economic Surprise Index 18.80 +2.4 basis points

• 10-Year TIPS Spread 1.50 -1.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) .92 n/a

Overseas Futures:

• Nikkei 225 Futures: Indicating +310 open in Japan 
• China A50 Futures: Indicating -164 open in China

• DAX Futures: Indicating +120 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long