North American Investment Grade CDS Index 92.0 bps -.90%
European Financial Sector CDS Index 135.27 bps +6.34%
Western Europe Sovereign Debt CDS Index 181.50 bps +2.25%
Emerging Market CDS Index 210.10 bps -.22%
2-Year Swap Spread 23.0 unch.
TED Spread 18.0 +1 bp
Economic Gauges:
3-Month T-Bill Yield .12% -1 bp
Yield Curve 252.0 -1 bp
China Import Iron Ore Spot $167.10/Metric Tonne -.42%
Citi US Economic Surprise Index -12.10 -2.5 points
10-Year TIPS Spread 2.19% -1 bp
Overseas Futures:
Nikkei Futures: Indicating +28 open in Japan
DAX Futures: Indicating +9 open in Germany
Portfolio:
Higher: On gains in my Retail, Ag and Technology long positions
Disclosed Trades: None
Market Exposure: 100% Net Long
BOTTOM LINE: Today's overall market action is mildly bullish as the S&P 500 trades slightly higher despite rising eurozone sovereign debt angst and recent equity gains. On the positive side, Education, Gaming, Internet, Steel, Gold, Alt Energy and Coal shares are especially strong, rising more than 1.0%. Cyclical and Small-Cap shares are outperforming again. Copper is rising slightly despite euro weakness. The 10-year yield is falling -7 bps to 2.94%. On the negative side, Disk Drive and Paper shares are under mild pressure, falling more than .75%. The Spain sovereign cds is rising +6.37% to 312.82 bps, the UK sovereign cds is jumping +6.3% to 71.76 bps, the China sovereign cds is climbing +4.24% to 73.43 bps and the Ireland sovereign cds is gaining +3.05% to 552.54 bps. Today's overall market action remains more positive than the major averages would suggest as stocks consolidate recent gains on light volume. I expect US stocks to trade mixed-to-higher into the close from current levels on seasonal strength, investment manager performance angst, diminishing economic fear, short-covering and less financial sector pessimism.
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