Bull Radar

Style Outperformer:

• Large-Cap Value +.18%

Sector Outperformers:

• 1) Hospitals +3.08% 2) Gold & Silver +1.29% 3) Tobacco +1.05%
  

Stocks Rising on Unusual Volume:

• FRSH, HLF, CYBR, WUBA, CMCM, JMEI, NMM, THC and TA

Stocks With Unusual Call Option Activity:

• 1) NRF 2) NLY 3) CZR 4) PFE 5) LLY
  

Stocks With Most Positive News Mentions:

• 1) DRI 2) GENW 3) EBAY 4) DVAX 5) PKE
  

Charts:

• ETFs Rising on Unusual Volume 

• Stocks Rising on Unusual Volume

Monday Watch

Weekend Headlines 
Bloomberg: 

• U.S. Should Consider Arming Ukrainians, Top NATO General Says. The U.S. should consider sending defensive weapons to Ukraine amid signs that last month’s cease-fire is crumbling, Air Force General Philip Breedlove said Sunday in Brussels. “I do not think that any tool of the U.S. or any other nation’s power should necessarily be off the table,” said Breedlove, the North Atlantic Treaty Organization’s top military commander. “Could it be destabilizing? The answer is yes. Inaction could also be destabilizing.” Rebels are amassing forces in the former Soviet republic’s eastern Donetsk and Luhansk regions, Ukrainian military spokesman Andriy Lysenko said in Kiev Sunday. Breedlove’s comments followed declarations by pro-Russian insurgents that they are preparing for a new offensive to expand their territory.  

• Greece Faces Decisive Week as Tsipras Is Set to Meet Merkel. Greek Prime Minister Alexis Tsipras is set to meet German Chancellor Angela Merkel for the second time in five days on Monday, at the start of a week that may prove decisive for Greece’s future in the euro area. The meeting in Berlin with the leader of the biggest contributor to Greece’s stalled 240 billion-euro ($259 billion) bailout is a precursor to make-or-break decisions Tsipras faces as his country’s financial predicament becomes ever more perilous. His government needs to spell out economic measures it plans to undertake as early as this week to unlock long-withheld aid payments that will keep the country afloat.

• Draghi Cheerleads for Economy as Greek Risk Looms Over Euro Area. Mario Draghi can gauge this week whether his optimism in the economy is well-founded. From business confidence in Germany to manufacturing in France and consumer spending in Italy, a smattering of data from across the 19-nation euro area will provide a glimpse at the state of the recovery. The European Central Bank president, who has become more upbeat on the economy since announcing his quantitative-easing program two months ago, will get a chance to present his view on Monday when he addresses the European Parliament in Brussels.

• No Risk Too Big as Bond Traders Plot Escape From Negative Yields. In the negative-yield vortex that is the European bond market, investors are discovering just what lengths they’re willing to go to generate returns. Norway’s $870 billion sovereign wealth fund said this month that it added Nigeria and lifted its share of lower-rated company debt to the highest since at least 2006. Allianz SE, Europe’s biggest insurer, is shifting from German bunds to bulk up on mortgages. JPMorgan Asset Management is buying speculative-grade corporate debt to boost returns. With the European Central Bank’s fight against deflation pushing yields on almost a third of the euro area’s $6.26 trillion of government bonds below zero, even the most risk-averse investors are taking chances on assets and regions that few would have considered just months ago. That’s exposing more clients to the inevitable trade-off that comes with the lure of higher returns: the likelihood of deeper losses.   

• Iran Talks Set for Decisive Week as Leaders Say Deal Reachable. Diplomats and leaders seeking an accord on Iran’s nuclear program said a deal is achievable as they prepare to enter a potentially decisive week for the talks. “We have not yet reached the finish line, but make no mistake, we have the opportunity to try to get this right,” U.S. Secretary of State John Kerry said on Saturday in Lausanne. A six-day session in the Swiss city broke up a day earlier, and talks are due to resume in the coming week.

• Topix Charts Evoking Calm Before 2013 Rout as Momentum Whips Up. Takashi Aoki has seen this chart before. The Tokyo-based fund manager is watching momentum indicators flashing signals Japan’s stock market is overheating, just as they were two years ago. Then and now, he says, few investors cared. When the pullback came in May 2013, it was abrupt: hints that the U.S. Federal Reserve would unwind stimulus drove the Topix index down 15 percent in 10 days. 

• China Internet Company Yielding 18% Shows Default Risks Brewing. Bonds of 11 Chinese companies now yield more than 15 percent as investors brace for the nation’s second onshore default amid record maturities in the coming quarter. Companies in Asia’s largest economy need to repay 1.5 trillion yuan ($242 billion) of local-currency notes in the period to June 30, the most for a quarter in Bloomberg data going back to 1998. The yield on Cloud Live Technology Group Co.’s 2017 debt jumped 157 basis points to 17.9 percent since the Beijing-based Internet company said on March 4 its ability to meet debt obligations next month face “big uncertainties.”

• China’s Internet Boom Starts to Fade. Just as the Nasdaq Composite Index surges to the cusp of the record high set during the dot-com-era, the excitement about China’s Internet boom is fading. Half of the 14 Chinese dot-coms that debuted in the U.S. last year are now trading below their initial sale prices. Even Alibaba Group Holding Ltd., one of those still up in price, has dropped 28 percent from its record high in November. On average, the 14 Chinese shares are down 3.1 percent this year, compared with a 6.1 percent advance in the Nasdaq. Investor confidence, so high when Alibaba brought its record $25 billion initial public offering to market last September, is being undermined now by a wave of poor earnings at Chinese technology companies. Those that went public last year including Weibo Corp., the microblogging service, and mobile dating app developer Momo Inc. have failed to deliver the revenue investors were expecting.   

• Evergrande Scraps $15 Billion Solar Push as China Property Drops. Evergrande Group, the parent of China’s most-indebted publicly traded homebuilder, scrapped its 90 billion-yuan ($14.5 billion) plan to branch out into solar power, stymieing its ambitions to become a clean-energy developer. After surveying the market, Evergrande, owned by billionaire Hui Ka Yan, concluded “the current timing is immature” to enter into solar power, the Guangzhou-based company said in an e-mailed statement to questions seeking an update on the plans. No funds have so far been spent on the solar business, the company added.

• Asian Stocks Advance From Six-Month High on Fed Rate Optimism. Asian stocks rose, with the regional benchmark index extending a six-month high, as speculation the Federal Reserve will proceed more slowly with interest-rate increases spurs a worldwide equity advance. The MSCI Asia Pacific Index gained 0.4 percent to 148.11 as of 9:01 a.m. in Tokyo, heading for its highest close since Sept. 8.

• Saudi’s Naimi Optimistic on Oil With Output Close to Record High. Saudi Arabia’s Oil Minister Ali al-Naimi is “optimistic” about the oil market and the world’s biggest exporter is pumping about 10 million barrels of crude a day, close to the record amount produced in 2013. Saudi Arabia is able to meet demand from any customer, al-Naimi said at a conference in Riyadh, Saudi Arabia, on Sunday. While global demand for oil is improving, there isn’t enough need to raise the nation’s production capacity beyond its current level of 12.5 million barrels a day, he said. OPEC’s refusal to cut production amid the surge in U.S. shale output fed a surplus that contributed to a drop of almost half in prices over the past year. The Organization of Petroleum Exporting Countries would have lost market share if it had cut output at the group’s Nov. 27 meeting, al-Naimi said. “Saudi Arabia cut output in 1980s to support prices. I was responsible for production at Aramco at that time, and I saw how prices fell, so we lost on output and on prices at the same time,” al-Naimi said. “We learned from that mistake.” Saudi Arabian Oil Co. is the state oil company known as Saudi Aramco.

Wall Street Journal:

• NATO Military Chief Philip Breedlove Flags Ukraine Risks. ‘Inaction could be destabilizing,’ says Breedlove. The North Atlantic Treaty Organization’s top military commander said Sunday that not delivering weapons to Ukraine carries risks and registered continued concerns about the implementation of the war-torn country’s cease-fire agreement signed in February.

• Sen. Ted Cruz of Texas to Announce 2016 GOP Presidential Bid. Champion of tea party movement sees advantage to starting early. Sen. Ted Cruz of Texas, a champion of the tea party movement who hopes to woo the GOP’s most conservative voters, is to announce on Monday that he is a candidate for his party’s presidential nomination in 2016, Cruz campaign aides say. Mr. Cruz would be the first major Republican candidate to officially announce a start to his campaign in what is sure to be a crowded field. 

• Strong Dollar Hammers Profits at U.S. Multinationals. Analysts have sharply reduced earnings estimates; smaller, domestically focused firms gain allure. The soaring dollar is crunching profits at giant U.S. multinationals, prompting Wall Street analysts to make their deepest cuts to earnings forecasts since the financial crisis and boosting the appeal of smaller, domestically focused companies. The dollar has jumped 12% in 2015 against the euro and is up 27% from a year ago. The WSJ Dollar Index, which measures the dollar against a basket of currencies, is up 5.3% this year. 

• It’s High Time to ‘Audit’ the Federal Reserve. Since 2008 the Fed has run vast, and risky, economic experiments without effective congressional oversight. The calls in Washington to “audit” the Federal Reserve are not for a narrow, bean-counting review of the institution’s financial statements. The audit’s goal is more fundamental: to assure that the checks and balances in a democratic government also apply to central bankers. It means figuring out how our elected representatives can effectively oversee unelected monetary “experts.” History shows that these so-called experts are prone to destructive inflationary and deflationary blunders, and that the Fed’s actions over... 

Fox News:

• UN Envoy warns: Yemen is being pushed 'to the edge of civil war'. (video) The U.N. special envoy for Yemen warned an emergency meeting of the U.N. Security Council on Sunday that events appear to be leading the country "to the edge of civil war" and urged all parties to step back from the brink and resolve the conflict peacefully. Jamal Benomar stressed repeatedly in a video briefing from Qatar that "peaceful dialogue is the only option we have."

CNBC:

• Starbucks(SBUX) ends "Race Together" campaign in stores, effort not over. Starbucks head Howard Schultz told employees on Sunday they will no longer be encouraged to write "Race Together" on drinks cups, but the company's effort to promote discussion of racial issues "is far from over."

Zero Hedge:

• One Last Look At The Real Economy Before It Implodes - Part 3. 

• Justice Department Rolls Out An Early Form Of Capital Controls In America.

• China Warns Against Irrational Exuberance.

• How HFT Destroys Markets: 50 Pages Of Evidence.

• The Farce That Is The "Market" In One Chart. This is what happened to the world's most valuable company(AAPL) in the last minutes of trading, when a few million shares in the last 10 minutes, and a volume slam in the last few seconds, sent the stock from just shy of $128 where it had been trading most of the day, to just over $125. A nearly $10 billion move in market cap in seconds.... on nothing. 

• Is Japan Zimbabwe?

• "Record Corporate Cash And Profitability" Are Lies: Here Is The Truth. (graph)

•  5 Things To Ponder: What Hath The Fed Wrought. (graph)

•  Hedge Funds Exploit Patent Laws To Push Down Biotechs.

• The Perfect Storm For Oil Hits In Two Months: US Crude Production To Soar Just As Storage Runs Out. (graph)

• 10 Charts Which Show We Are Much Worse Off Than Just Before The Last Economic Crisis. (graph)

• NATO Launches "Wide-Scale" War Games Near Russian Border, Creates "Line Of Troops". (video)

• Near Perfect Correlation Between Wages And Spending Bodes Poorly For Economy. (graph)

• Greeks Take It To The Mattresses As Graccident Looms.

• Open Letter To Janet Yellen. 

• No Longer Quiet On The Eastern Front (Part 2).

• Germany Gives Greece One Final Ultimatum After Friday's "Optimistic" Talks Devolve Into Disagreement And Confusion.

• US Officially Loses Battle Over China-Led Investment Bank.

• After The Fed Crushed The Middle Class, It Is Targeting The American Family.

• The Fed’s Trapped In The Corner With An Empty Bucket.

• Drowning In Liquidity But None In The Bond Market: The Spark Of The Next Financial Crisis? 

• BIS Slams The Fed: The Solution To Bubbles Is Not More Bubbles, It Is Avoiding Bubbles In The First Place.

• Spot The Odd One Out. (graph)

Business Insider:

• Iran's leader says ‘Of course, yes, death to America’ amid tense nuclear talks. Iran’s Supreme leader Ali Khamenei called for “Death to America” on Saturday, a day after President Barack Obama appealed to Iran to seize a “historic opportunity” for a nuclear deal and a better future, and as US Secretary of State John Kerry claimed substantial progress toward an accord. Khamenei told a crowd in Tehran that Iran would not capitulate to Western demands. When the crowd started shouting, “Death to America,” the ayatollah responded: “Of course yes, death to America, because America is the original source of this pressure.

• Google(GOOG) expected to face antitrust charges in Europe as soon as next month.

• Cash-strapped oil companies have two options: high-interest debt or bankruptcy.

• The Greek crisis is becoming a geopolitical mess.

• The White House-Israel rift isn't going away anytime soon.

• We're witnessing the biggest threat to US corporate earnings since the 2008 financial crisis.

• Iran-backed Shiite rebels have seized parts of a key city in Yemen.

• Italian economist and ex-prime minister: 'France is the big problem of the EU'.

• CIA director: Iran is becoming part of the problem in Iraq.

• Emerging markets are heading for a nasty dollar hangover.

• Russia warns Denmark its warships could become nuclear targets.

• The head of the most important startup farm in Silicon Valley thinks valuations are too high.

• Jewish leaders in Greece want Germany to pay more in reparations – with 7 decades of interest.

• New York Senator Chuck Schumer calls for an investigation into Lumber Liquidators' flooring. 

Reuters:

• Abe-Kuroda honeymoon soured by fiscal friction. A rift is emerging between Prime Minister Shinzo Abe and his hand-picked central bank boss on how to fix Japan's tattered finances, which could blunt the impact of the "Abenomics" stimulus policies they have worked together to prosecute. Two years into Bank of Japan Governor Haruhiko Kuroda's tenure, the cracks are becoming hard to conceal and could affect the timing of any further monetary easing and an eventual end to the massive money-printing program he set in train.

• Tenet(THC) near deal to buy United Surgical for more than $2.5 bln-WSJ. Hospital operator Tenet Healthcare Corp is poised to buy United Surgical Partners International Inc in a deal that could be worth more than $2.5 billion, the Wall Street Journal reported on Sunday, citing people familiar with the matter.

Financial Times:

• Greece’s leader warns Merkel of ‘impossible’ debt payments. Alexis Tsipras, the Greek prime minister, has warned Angela Merkel that it will be “impossible” for Athens to service debt obligations due in the coming weeks if the EU fails to distribute any short-term financial assistance to the country. The warning, contained in a letter sent by Mr Tsipras to the German chancellor and obtained by the Financial Times, comes as concerns mount that Athens will struggle to make pension and wage payments at the end of this month and could run out of cash before the end of April.

Economic Daily News:

• Suppliers Say Apple(AAPL) Watch Monthly Shipments Target Halved. Apple halved Apple Watch shipment target to 1.25m-1.5m a month because of suppliers' relatively low yield rates of assembling and display panels, citing people in the supply chain.

IRNA:

• Iran Is Not Given to Concessions, Negotiator Araghchi Tells IRNA. Iran is not to give away any concessions in talks with the 5+1, senior nuclear negotiator Abbas Araghchi cited as saying by the country's official Islamic Republic News Agency.

Night Trading

• Asian indices are unch. to +.75% on average.

• Asia Ex-Japan Investment Grade CDS Index 1113.0 -3.0 basis points.

• Asia Pacific Sovereign CDS Index 60.5 -3.5 basis points.

• S&P 500 futures +.13%.

• NASDAQ 100 futures +.13%.

Morning Preview Links

Earnings of Note
Company/Estimate

• None of note

Economic Releases
8:30 am EST

• The Chicago Fed National Activity Index for February is estimated to fall to .1 versus .13 in January.

10:00 am EST

• Existing Home Sales for February are estimated to rise to 4.92M versus 4.82M in January.

Upcoming Splits

• None of note

Other Potential Market Movers

• The Fed's Fisher speaking, Fed's Williams speaking, Fed's Mester speaking and the HSBC China PMI data could also impact trading today.

BOTTOM LINE: Asian indices are mostly higher, boosted by real estate and industrial shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the week.

Weekly Outlook

Week Ahead by Bloomberg. 
Wall St. Week Ahead by Reuters.
Weekly Economic Calendar by Briefing.com.

BOTTOM LINE: I expect US stocks to finish the week modestly lower on global growth worries, European/Emerging Markets/US High-Yield debt angst, earnings concerns, profit-taking, crude oil weakness and technical selling. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 50% net long heading into the week.

Market Week in Review

• S&P 500 2,108.10 +2.66%*

The Weekly Wrap by Briefing.com.

*5-Day Change

Weekly Scoreboard*

Indices

• S&P 500 2,108.10 +2.66%

• DJIA 18,127.65 +2.13%

• NASDAQ 5,026.42 +3.18%

• Russell 2000 1,266.37 +2.78%

• S&P 500 High Beta 35.01 +3.0% 

• Goldman 50 Most Shorted 138.30 +1.27% 

• Wilshire 5000 22,098.01 +2.72%

• Russell 1000 Growth 1,014.10 +2.96%

• Russell 1000 Value 1,032.05 +2.41%

• S&P 500 Consumer Staples 503.22 +1.86%

• Solactive US Cyclical 140.42 +1.58%

• Morgan Stanley Technology 1,038.47 +2.67%

• Transports 9,148.13 +2.27%

• Utilities 595.33 +3.91%

• Bloomberg European Bank/Financial Services 116.74 +2.38%

• MSCI Emerging Markets 39.88 +3.39%

• HFRX Equity Hedge 1,211.30 +1.54%
• HFRX Equity Market Neutral 1,002.44 +.86%

Sentiment/Internals

• NYSE Cumulative A/D Line 238,286 +1.56%

• Bloomberg New Highs-Lows Index 116 +135

• Bloomberg Crude Oil % Bulls 25.0% -11.13%

• CFTC Oil Net Speculative Position 243,488 -6.59%
• CFTC Oil Total Open Interest 1,760,721 +5.38%

• Total Put/Call .80 -33.88%

• OEX Put/Call .88 -5.38%

• ISE Sentiment 99.0 +26.92%

• NYSE Arms .75 -43.60%

• Volatility(VIX) 13.02 -18.62%

• S&P 500 Implied Correlation 60.24 -.03%

• G7 Currency Volatility (VXY) 10.54 -3.39%

• Emerging Markets Currency Volatility (EM-VXY) 10.37 -5.73%

• Smart Money Flow Index 17,944.03 +1.77%

• ICI Money Mkt Mutual Fund Assets $2.671 Trillion -.71%
• ICI US Equity Weekly Net New Cash Flow +$.326 Billion

• AAII % Bulls 27.2 -14.1%
• AAII % Bears 31.5 +23.9%

Futures Spot Prices

• CRB Index 214.11 +1.62%

• Crude Oil 46.57 +3.49%

• Reformulated Gasoline 179.78 +2.38%

• Natural Gas 2.79 +2.39%

• Heating Oil 173.43 +1.33%

• Gold 1,184.60 +2.26%

• Bloomberg Base Metals Index 169.54 +.59%

• Copper 276.10 +3.23%

• US No. 1 Heavy Melt Scrap Steel 226.67 USD/Ton unch.
• China Iron Ore Spot 54.66 USD/Ton -5.20%

• Lumber 280.80 +2.67%

• UBS-Bloomberg Agriculture 1,130.8 +1.67%

Economy

• ECRI Weekly Leading Economic Index Growth Rate -3.7% +30 basis points

• Philly Fed ADS Real-Time Business Conditions Index .0693 n/a

• S&P 500 Blended Forward 12 Months Mean EPS Estimate 122.33 -.07%

• Citi US Economic Surprise Index -72.10 -12.0 points

• Citi Eurozone Economic Surprise Index 40.20 -3.9 points

• Citi Emerging Markets Economic Surprise Index -.60 -6.2 points

• Fed Fund Futures imply 52.0% chance of no change, 48.0% chance of 25 basis point cut on 4/29

• US Dollar Index 97.91 -2.27%

• Euro/Yen Carry Return Index 135.69 +1.97%

• Yield Curve 135.0 -11.0 basis points

• 10-Year US Treasury Yield 1.93% -18.0 basis points

• Federal Reserve's Balance Sheet $4.458 Trillion +.15%

• U.S. Sovereign Debt Credit Default Swap 17.82 +5.5%

• Illinois Municipal Debt Credit Default Swap 179.0 -1.90%

• Western Europe Sovereign Debt Credit Default Swap Index 21.79 +3.24%

• Asia Pacific Sovereign Debt Credit Default Swap Index 60.64 -8.99%
  

• Emerging Markets Sovereign Debt CDS Index 351.22 -2.23%
  

• Israel Sovereign Debt Credit Default Swap 75.01 +2.56%

• Iraq Sovereign Debt Credit Default Swap 344.61 -1.76%

• Russia Sovereign Debt Credit Default Swap 463.96 -4.42%

• iBoxx Offshore RMB China Corporates High Yield Index 114.19 +.31%

• 10-Year TIPS Spread 1.77% +7.0 basis points

• TED Spread 26.50 +1.5 basis points

• 2-Year Swap Spread 26.5 -1.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -22.75 -3.5 basis points

• N. America Investment Grade Credit Default Swap Index 62.86 -4.44%

• America Energy Sector High-Yield Credit Default Swap Index 1,025.0 +38.58%

• European Financial Sector Credit Default Swap Index 64.30 +15.14%
  

• Emerging Markets Credit Default Swap Index 322.0 -23.24%
  

• CMBS AAA Super Senior 10-Year Treasury Spread  to Swaps 88.0 +3.0 basis points

• M1 Money Supply $2.980 Trillion -.63%

• Commercial Paper Outstanding 1,025.30 +.20%

• 4-Week Moving Average of Jobless Claims 304,750 +2,500

• Continuing Claims Unemployment Rate 1.8% unch.

• Average 30-Year Mortgage Rate 3.78% -8.0 basis points
• Weekly Mortgage Applications 399.30 -3.88%

• Bloomberg Consumer Comfort 44.2 +.9 point

• Weekly Retail Sales +2.60% unch.

• Nationwide Gas $2.43/gallon -.01/gallon

• Baltic Dry Index 584.0 +3.92%

• China (Export) Containerized Freight Index 1,034.29 -3.15%

• Oil Tanker Rate(Arabian Gulf to U.S. Gulf Coast) 27.50 unch.
• Rail Freight Carloads 274,175 +8.04%

Best Performing Style

• Mid-Cap Value +3.1%

Worst Performing Style

• Large-Cap Value +2.4%

Leading Sectors

• Gaming +6.8%

• Biotech +6.2%

• Steel +5.9%

• Gold & Silver +5.6%

• REITs +5.4%

Lagging Sectors

• I-Banks +1.4% 

• Networking +1.1%

• Tobacco +.7%

• Agriculture +.6%

• Banks +.6%

Weekly High-Volume Stock Gainers (25)

• ESPR, RTRX, FOLD, BBX, RGEN, FRSH, EBIX, TA, TLYS, ITG, AKBA, PRSC, HPTX, NVRO, UAM, BGC, CKEC, GES, LOCO, JBL, IMDZ, GNCMA, CQH, REV and LTM

Weekly High-Volume Stock Losers (10)

• TUES, CNCE, CBPX, PDVW, MTOR, RSPP, FTD, VNCE, EPZM and VEC

Weekly Charts
ETFs

• High-Volume Gainers

• High-Volume Losers

Stocks

• High-Volume Gainers

• High-Volume Losers

*5-Day Change

Stocks Surging into Final Hour on Central Bank Hopes, Less European/Emerging Markets/US High-Yield Debt Angst, Oil Bounce, Homebuilding/Commodity Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 13.03 -7.39%

• Euro/Yen Carry Return Index 135.86 +1.13%

• Emerging Markets Currency Volatility(VXY) 10.36 -1.89%

• S&P 500 Implied Correlation 59.96 -1.75%

• ISE Sentiment Index 115.0 +57.53%

• Total Put/Call .76 -13.64%

• NYSE Arms .59 -66.99% 

Credit Investor Angst:

• North American Investment Grade CDS Index 62.89 -1.02%
• America Energy Sector High-Yield CDS Index 1,025.0 +.62%

• European Financial Sector CDS Index 64.35 +3.94%

• Western Europe Sovereign Debt CDS Index 21.88 -7.48%
• Asia Pacific Sovereign Debt CDS Index 61.05 -4.78%

• Emerging Market CDS Index 320.61 -22.3% (new series)

• iBoxx Offshore RMB China Corporates High Yield Index 114.19 +.09%
• 2-Year Swap Spread 26.50 +.5 basis point

• TED Spread 26.0 +2.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -22.75 +1.0 basis point

Economic Gauges:

• 3-Month T-Bill Yield .00% -1.0 basis point

• Yield Curve 135.0 -1.0 basis point

• China Import Iron Ore Spot $54.66/Metric Tonne -.62%

• Citi US Economic Surprise Index -72.10 unch.
• Citi Eurozone Economic Surprise Index 40.20 -.1 point

• Citi Emerging Markets Economic Surprise Index -.6 +.9 point

• 10-Year TIPS Spread 1.77 -3.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating +85 open in Japan

• DAX Futures: Indicating +42 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long