Stocks Slightly Higher into Final Hour on Diminishing Geopolitical Concerns, Stable Long-Term Rates, Yen Weakness, Biotech/Homebuilding Sector Strength

 Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 12.0 -2.4%

• Euro/Yen Carry Return Index 134.90 -.06%

• Emerging Markets Currency Volatility(VXY) 9.56 -.31%

• S&P 500 Implied Correlation 34.08 +.47%

• ISE Sentiment Index 155.0 +53.5%
  

• Total Put/Call .68 -6.9%

• NYSE Arms .86 +7.21%

Credit Investor Angst:

• North American Investment Grade CDS Index 64.08 -1.1%
  

• America Energy Sector High-Yield CDS Index 378.0 +.04%

• European Financial Sector CDS Index 84.17 +.7%

• Italian/German 10Y Yld Spread 237.0 +2.5 basis points
  

• Asia Pacific Sovereign Debt CDS Index 12.60 -2.74%

• Emerging Market CDS Index 182.40 +1.87%
  

• iBoxx Offshore RMB China Corporate High Yield Index 149.81 +.04%

• 2-Year Swap Spread 26.5 -.75 basis point

• TED Spread 39.75 -1.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -9.5 +2.25 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.59 -.42%
• 3-Month T-Bill Yield 1.92% +2.0 basis points
  

• Yield Curve 42.0 -1.0 basis point

• China Iron Ore Spot 65.41 USD/Metric Tonne -.67%

• Citi US Economic Surprise Index 11.20 +2.0 points

• Citi Eurozone Economic Surprise Index -99.80 -1.8 points

• Citi Emerging Markets Economic Surprise Index -17.70 -1.5 points

• 10-Year TIPS Spread 2.14 unch.
  
• 100.0% chance of Fed rate hike at August 1 meeting, 100.0% chance at September 26 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -48 open in Japan 
• China A50 Futures: Indicating -90 open in China

• DAX Futures: Indicating -3 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 75% Net Long