Stocks Surging into Afternoon on Dovish Yellen Commentary, Dollar Weakness, Earnings Optimism, Commodity/Technology Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Below Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 17.3 -6.0%
• Bloomberg Global Risk On/Risk Off Index 3,237.0 +49.0 points

• Euro/Yen Carry Return Index 136.51 +.39%

• Emerging Markets Currency Volatility(VXY) 9.3 -1.0%

• S&P 500 Implied Correlation 52.0 +1.5%

• ISE Sentiment Index 122.0 +28.0 points
  

• Total Put/Call .81 -6.9%

• NYSE Arms .83 +10.7%

Credit Investor Angst:

• North American Investment Grade CDS Index 50.5 -1.5%
  

• US Energy High-Yield OAS 429.44 -.35%

• European Financial Sector CDS Index 59.74 -.4%

• Italian/German 10Y Yld Spread 118.0 +3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 79.65 -.04%
  

• Emerging Market CDS Index 157.37 -4.7%
  

• China Corp. High-Yield Bond USD ETF(KCCB) 39.40 -.06%

• 2-Year Swap Spread 10.25 -.5 basis point

• TED Spread 15.25 -1.5 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -2.5 -1.0 basis point
  
• MBS  5/10 Treasury Spread  63.0 -.25 basis point
  
• IHS Markit CMBX BBB- 6 71.75 +.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 61.48 +.65%
• 3-Month T-Bill Yield .01% unch.
  

• Yield Curve 141.0 -2.0 basis points
  

• China Iron Ore Spot 203.50 USD/Metric Tonne +6.1%

• Citi US Economic Surprise Index 19.2 -3.1 points

• Citi Eurozone Economic Surprise Index 162.3 -2.0 points
  

• Citi Emerging Markets Economic Surprise Index 62.7 +11.0 points

• 10-Year TIPS Spread 2.50 +4.0 basis points
• 93.0% chance of no change at Sept. 22nd meeting, 93.0% chance of no change at Nov. 3rd meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +28 open in Japan 
• China A50 Futures: Indicating +12 open in China

• DAX Futures: Indicating -5 open in Germany

Portfolio:

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

• Disclosed Trades:  Covered some of my (IWM)/(QQQ) hedges and some of my emerging market shorts
  

• Market Exposure: Moved to 100% Net Long