Stocks Slightly Higher into Afternoon on Less European/Emerging Markets Debt Angst, Yen Weakness, Buyout Speculation, HMO/Restaurant Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Slightly Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 10.50 -2.05%

• Euro/Yen Carry Return Index 130.74 +.22%

• Emerging Markets Currency Volatility(VXY) 8.14 -1.45%

• S&P 500 Implied Correlation 40.02 +.68%

• ISE Sentiment Index 62.0 -44.6%
  

• Total Put/Call .88 -2.22%

• NYSE Arms 1.33 +30.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 62.39 -.41%
  

• America Energy Sector High-Yield CDS Index 360.0 +1.64%

• European Financial Sector CDS Index 67.39 +.51%

• Western Europe Sovereign Debt CDS Index 7.99 -5.67%

• Asia Pacific Sovereign Debt CDS Index 19.44 -2.34%

• Emerging Market CDS Index 192.62 -.54%
  

• iBoxx Offshore RMB China Corporate High Yield Index 138.50 +.02%

• 2-Year Swap Spread 22.5 -1.25 basis points

• TED Spread 27.25 -1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -33.25 unch.

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 72.94 +.12%
• 3-Month T-Bill Yield .93% +3.0 basis points
  

• Yield Curve 96.50 -1.5 basis points
  

• China Import Iron Ore Spot $60.52/Metric Tonne -2.39%

• Citi US Economic Surprise Index -38.80 +.1 point

• Citi Eurozone Economic Surprise Index 60.90 +.5 point

• Citi Emerging Markets Economic Surprise Index 21.80 -1.2 points

• 10-Year TIPS Spread 1.84 -2.0 basis points
  
• 93.4% chance of Fed rate hike at July 26 meeting, 95.6% chance at Sept. 20 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +3 open in Japan 
• China A50 Futures: Indicating -10 open in China

• DAX Futures: Indicating -10 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 75% Net Long