Stocks Reversing Higher into Afternoon on Less European/Emerging Markets/US High-Yield Debt Angst, Oil Bounce, Index Rebalancing, Tech/Metals & Mining Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 9.94 -5.15%

• Euro/Yen Carry Return Index 130.04 +.38%

• Emerging Markets Currency Volatility(VXY) 7.40 -1.6%

• S&P 500 Implied Correlation 34.31 -3.16%

• ISE Sentiment Index 135.0 +35.0%
  

• Total Put/Call .92 +16.46%

• NYSE Arms .96 +.9%

Credit Investor Angst:

• North American Investment Grade CDS Index 60.71 -1.91%
  

• America Energy Sector High-Yield CDS Index 493.0 +1.78%

• European Financial Sector CDS Index 52.90 -3.42%

• Western Europe Sovereign Debt CDS Index 6.08 -12.83%

• Asia Pacific Sovereign Debt CDS Index 19.24 +.26%

• Emerging Market CDS Index 197.97 -1.49%
  

• iBoxx Offshore RMB China Corporate High Yield Index 139.34 -.07%

• 2-Year Swap Spread 20.0 +.5 basis point

• TED Spread 33.5 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -30.0 -.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 72.75 +.33%
• 3-Month T-Bill Yield .96% +1.0 basis point
  

• Yield Curve 81.0 unch.

• China Import Iron Ore Spot $56.75/Metric Tonne +.39%

• Citi US Economic Surprise Index -74.60 -1.5 points

• Citi Eurozone Economic Surprise Index 4.70 -13.8 points

• Citi Emerging Markets Economic Surprise Index 10.9 +.3 point

• 10-Year TIPS Spread 1.71 +1.0 basis point
  
• 24.3% chance of Fed rate hike at Sept. 20 meeting, 27.5% chance at Nov. 1 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +10 open in Japan 
• China A50 Futures: Indicating -4 open in China

• DAX Futures: Indicating -11 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 100% Net Long