Stocks Reversing Higher into Final Hour on Financial Sector Strength, Euro Bounce, Short-Covering, Bargain-Hunting

Broad Market Tone:

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

Equity Investor Angst:

• VIX 23.78 -1.49%
  
• ISE Sentiment Index 97.0 +11.49%
  
• Total Put/Call 1.05 -15.32%
  
• NYSE Arms .98 -49.08%
  

Credit Investor Angst:

• North American Investment Grade CDS Index 122.53 +.21%
  
• European Financial Sector CDS Index 297.38 -.49%
  
• Western Europe Sovereign Debt CDS Index 326.26 +1.51%
  
• Emerging Market CDS Index 333.19 +1.11%
  
• 2-Year Swap Spread 35.75 +.75 basis point
  
• TED Spread 40.50 +.5 basis point
  
• 3-Month EUR/USD Cross-Currency Basis Swap -50.25 +.5 basis point
  

Economic Gauges:

• 3-Month T-Bill Yield .07% unch.
  
• Yield Curve 131.0 -4 basis points
  
• China Import Iron Ore Spot $134.80/Metric Tonne unch.
  
• Citi US Economic Surprise Index -35.90 -5.9 points
  
• 10-Year TIPS Spread 2.09 +2 basis points
  

Overseas Futures:

• Nikkei Futures: Indicating a -39 open in Japan
• DAX Futures: Indicating +13 open in Germany
  

Portfolio:

• Higher: On gains in my Retail and Tech sector longs
  
• Disclosed Trades: Covered all of my (IWM), (QQQ) hedges, covered some of my (EEM) short, added (QCOM) long
  
• Market Exposure: Moved to 100% Net Long