Stocks Slightly Lower into Final Hour on Profit-Taking, More Shorting, Financial Sector Pessimism

Broad Market Tone:

• Advance/Decline Line: About Even
  
• Sector Performance: Most Sectors Rising
  
• Volume: Below Average
  
• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• VIX 27.27 -1.91%
  
• ISE Sentiment Index 44.0 -58.59%
  
• Total Put/Call .92 +3.37%
  
• NYSE Arms .84 +204.98%
  

Credit Investor Angst:

• North American Investment Grade CDS Index 127.60 -2.42%
  
• European Financial Sector CDS Index 288.37 -1.25%
  
• Western Europe Sovereign Debt CDS Index 342.0 -.98%
  
• Emerging Market CDS Index 303.98 -.43%
  
• 2-Year Swap Spread 42.0 +2 bps
  
• TED Spread 53.0 unch.
  

Economic Gauges:

• 3-Month T-Bill Yield .00% unch.
  
• Yield Curve 185.0 +3 bps
  
• China Import Iron Ore Spot $133.60/Metric Tonne +2.06%
  
• Citi US Economic Surprise Index 61.90 +.1 point
  
• 10-Year TIPS Spread 2.07 +1 bp

Overseas Futures:

• Nikkei Futures: Indicating +35 open in Japan
• DAX Futures: Indicating +30 open in Germany

Portfolio:

• Higher: On gains in my retail, technology, medical and biotech sector longs
  
• Disclosed Trades: Covered all of my (IWM)/(QQQ) hedges and some of my (EEM) short
  
• Market Exposure: Moved to 100% Net Long