Stocks Surging into Final Hour on Less Emerging Markets/US High-Yield Debt Angst, Oil Bounce, Seasonality, Tech/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Light

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 16.20 -4.20%

• Euro/Yen Carry Return Index 137.61 -.29%

• Emerging Markets Currency Volatility(VXY) 11.35 +.71%

• S&P 500 Implied Correlation 56.44 -1.96%

• ISE Sentiment Index 72.0 -15.29%

• Total Put/Call .82 -36.92%

• NYSE Arms .77 -54.28% 

Credit Investor Angst:

• North American Investment Grade CDS Index 89.06 -2.32%

• America Energy Sector High-Yield CDS Index 1,710.0 +1.29%

• European Financial Sector CDS Index 75.53 +4.81%

• Western Europe Sovereign Debt CDS Index 17.06 -.87%

• Asia Pacific Sovereign Debt CDS Index 72.03 -.06%

• Emerging Market CDS Index 353.28 -1.29%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.76 unch.

• 2-Year Swap Spread 8.25 -4.0 basis points

• TED Spread 37.5 -3.0 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -22.5 +3.0 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 69.58 -.13%
• 3-Month T-Bill Yield .20% unch.

• Yield Curve 122.0 +1.0 basis point

• China Import Iron Ore Spot $42.31/Metric Tonne +2.45%

• Citi US Economic Surprise Index -28.7 +2.5 points

• Citi Eurozone Economic Surprise Index 14.2 +.3 point

• Citi Emerging Markets Economic Surprise Index 14.80 -1.1 points

• 10-Year TIPS Spread 1.56% +3.0 basis points
• 54.5% chance of next Fed rate hike at March 16 meeting, 61.4% chance at April 27 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +197 open in Japan 
• China A50 Futures: Indicating -11 open in China

• DAX Futures: Indicating +17 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long