Stocks Higher into Final Hour on Falling Eurozone Debt Angst, Short-Covering, Less Economic Pessimism, Financial/Homebuilder Sector Strength

Broad Market Tone:

• Advance/Decline Line: Modestly Higher
• Sector Performance: Mixed
• Volume: Below Average
• Market Leading Stocks: Underperforming

Equity Investor Angst:

• VIX 15.03 -1.25%
• ISE Sentiment Index 118.0 -7.09%
• Total Put/Call .78 -4.88%
• NYSE Arms .62 -22.05%

Credit Investor Angst:

• North American Investment Grade CDS Index 89.73 bps -2.70%
• European Financial Sector CDS Index 153.24 bps -9.89%
• Western Europe Sovereign Debt CDS Index 104.76 bps -16.27%
• Emerging Market CDS Index 209.38 bps -1.26%
• 2-Year Swap Spread 9.0 -.25 basis point
• TED Spread 21.5 -1.75 basis points
• 3-Month EUR/USD Cross-Currency Basis Swap -24.25 +.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .11% +2 basis points
• Yield Curve 151.0 +6 basis points
• China Import Iron Ore Spot $115.40/Metric Tonne +2.49%
• Citi US Economic Surprise Index 55.50 +3.1 points
• 10-Year TIPS Spread 2.48 +2 basis points

Overseas Futures:

• Nikkei Futures: Indicating +76 open in Japan
• DAX Futures: Indicating -3 open in Germany

Portfolio:

• Slightly Lower: On losses in my Medical/Tech sector longs and index hedges
• Disclosed Trades: None
• Market Exposure: 50% Net Long