Stocks Surging into Afternoon on Stable Long-Term Rates, Oil Gain, Dollar Weakness, Tech/Gaming Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 18.8 -6.8%
• Bloomberg Global Risk On/Risk Off Index 3,251.0 +111.0 points

• Euro/Yen Carry Return Index 137.31 +.14%

• Emerging Markets Currency Volatility(VXY) 9.1 +1.1%

• S&P 500 Implied Correlation 49.7 -5.8%

• ISE Sentiment Index 132.0  +25.0 points
  

• Total Put/Call .78 -7.1%

• NYSE Arms 1.01 -7.3%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.88 -.95%
  

• US Energy High-Yield OAS 438.25 +.09%

• European Financial Sector CDS Index 60.15 -1.55%

• Italian/German 10Y Yld Spread 117.0 +1.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 87.90 -1.98%
  

• Emerging Market CDS Index 161.05 -1.5%
  

• China Corp. High-Yield Bond USD ETF(KCCB) 39.40 +.25%

• 2-Year Swap Spread 8.75 -.75 basis point

• TED Spread 15.0 -.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -1.5 -.25 basis point
  
• MBS  5/10 Treasury Spread  62.0 -1.0 basis point
  
• IHS Markit CMBX BBB- 6 71.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 61.31 +.11%
• 3-Month T-Bill Yield .01% +1.0 basis point
  

• Yield Curve 147.0 -1.0 basis point
  

• China Iron Ore Spot 185.0 USD/Metric Tonne -1.0%

• Citi US Economic Surprise Index 11.3 -3.4 points

• Citi Eurozone Economic Surprise Index 136.20 -5.9 points
  

• Citi Emerging Markets Economic Surprise Index 53.2 -2.9 points

• 10-Year TIPS Spread 2.45 -1.0 basis point
• 93.0% chance of no change at Sept. 22nd meeting, 91.0% chance of no change at Nov. 3rd meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +146 open in Japan 
• China A50 Futures: Indicating +36 open in China

• DAX Futures: Indicating +144 open in Germany

Portfolio:

• Higher: On gains in my medical/tech/industrial/commodity sector longs and emerging market shorts
  

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

• Market Exposure: Moved to 100% Net Long