Stocks Rising into Final Hour on Short-Covering, Euro Bounce, Bargain-Hunting, Technical Buying

Broad Market Tone:

• Advance/Decline Line: Substantially Higher
  
• Sector Performance: Almost Every Sector Rising
  
• Volume: Light
  
• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• VIX 17.06 -6.93%
  
• ISE Sentiment Index 94.0 unch.
  
• Total Put/Call 1.01 +3.06%
  
• NYSE Arms .93 -36.88%
  

Credit Investor Angst:

• North American Investment Grade CDS Index 112.03 -1.1%
  
• European Financial Sector CDS Index 273.13 bps -1.8%
  
• Western Europe Sovereign Debt CDS Index 272.43 -.57%
  
• Emerging Market CDS Index 259.09 -2.60%
  
• 2-Year Swap Spread 23.0 +1.25 basis points
  
• TED Spread 35.75 unch.
  
• 3-Month EUR/USD Cross-Currency Basis Swap -49.50 +1.5 basis points
  

Economic Gauges:

• 3-Month T-Bill Yield .09% -1 basis point
  
• Yield Curve 125.0 +4 basis points
  
• China Import Iron Ore Spot $132.80/Metric Tonne -.67%
  
• Citi US Economic Surprise Index -61.60 -.2 point
  
• 10-Year TIPS Spread 2.08 +3 basis points
  

Overseas Futures:

• Nikkei Futures: Indicating +92 open in Japan
• DAX Futures: Indicating +12 open in Germany
  

Portfolio:

• Higher: On gains in my biotech, retail, medical and tech sector longs
  
• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my (EEM) short, then added them back
  
• Market Exposure: 50% Net Long