Stocks Slightly Higher into Afternoon on Buyout Speculation, Short-Covering, Bargain-Hunting

Broad Market Tone:

• Advance/Decline Line: Lower
  
• Sector Performance: Mixed
  
• Volume: Below Average
  
• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• VIX 25.60 -3.18%
  
• ISE Sentiment Index 119.0 +46.91%
  
• Total Put/Call .91 -11.65%
  
• NYSE Arms 1.05 -40.12%
  

Credit Investor Angst:

• North American Investment Grade CDS Index 109.21 bps -.68%
  
• European Financial Sector CDS Index 120.75 bps -.22%
  
• Western Europe Sovereign Debt CDS Index 141.33 bps -2.47%
  
• Emerging Market CDS Index 232.27 bps -.84%
  
• 2-Year Swap Spread 17.0 -1bp
  
• TED Spread 17.0 unch.
  

Economic Gauges:

• 3-Month T-Bill Yield .15% unch.
  
• Yield Curve 212.0 unch.
  
• China Import Iron Ore Spot $147.50/Metric Tonne unch.
  
• Citi US Economic Surprise Index -59.5 -.5 point
  
• 10-Year TIPS Spread 1.57% -3 bps
  

Overseas Futures:

• Nikkei Futures: Indicating -31 open in Japan
• DAX Futures: Indicating +2 open in Germany

Portfolio:

• Slightly Higher: On gains in my Medical and Ag long positions
  
• Disclosed Trades: None
  
• Market Exposure: 75% Net Long