Stocks Rising into Final Hour on Less Eurozone Debt Angst, Short-Covering, Less Economic Pessimism, Tech/Commodity Sector Strength

Broad Market Tone:

• Advance/Decline Line: Higher
• Sector Performance: Most Sectors Rising
• Volume: Below Average
• Market Leading Stocks: Underperforming

Equity Investor Angst:

• VIX 15.17 -.65%
• ISE Sentiment Index 154.0 +79.07%
• Total Put/Call .82 +9.33%
• NYSE Arms .86 +9.44%

Credit Investor Angst:

• North American Investment Grade CDS Index 93.19 bps -2.59%
• European Financial Sector CDS Index 170.03 bps -3.57%
• Western Europe Sovereign Debt CDS Index 121.62 bps -8.2%
• Emerging Market CDS Index 212.99 bps -1.28%
• 2-Year Swap Spread 9.25 -1.5 basis points
• TED Spread 23.25 unch.
• 3-Month EUR/USD Cross-Currency Basis Swap -24.50 +.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .09% -1 basis point
• Yield Curve 145.0 +4 basis points
• China Import Iron Ore Spot $112.60/Metric Tonne -.35%
• Citi US Economic Surprise Index 52.40 -3.1 points
• 10-Year TIPS Spread 2.46 -1 basis point

Overseas Futures:

• Nikkei Futures: Indicating +89 open in Japan
• DAX Futures: Indicating +4 open in Germany

Portfolio:

• Higher: On gains in my Retail, Medical, Biotech and Tech sector longs
• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and then added them back
• Market Exposure: 50% Net Long