Stocks Slightly Higher into Final Hour on Debt Ceiling Hopes, Short-Covering, Diminishing Global Growth Fears, Biotech/Homebuilding Sector Strength

Today's Market Take:

Broad Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• VIX 13.92 +2.20%

• ISE Sentiment Index 96.0 -1.3%

• Total Put/Call .85 -11.46%

• NYSE Arms 1.57 -6.68%

Credit Investor Angst:

• North American Investment Grade CDS Index 86.71 +1.37%

• European Financial Sector CDS Index 124.21 +1.05%

• Western Europe Sovereign Debt CDS Index 101.80 +.45%

• Emerging Market CDS Index 207.51 +1.16%

• 2-Year Swap Spread 13.50 unch.

• TED Spread 25.0 +.5 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -20.0 -.25 bp

Economic Gauges:

• 3-Month T-Bill Yield .06% unch.

• Yield Curve 161.0 unch.

• China Import Iron Ore Spot $158.50/Metric Tonne unch.

• Citi US Economic Surprise Index 30.0 -1.1 points

• 10-Year TIPS Spread 2.52 +2 bps

Overseas Futures:

• Nikkei Futures: Indicating +57 open in Japan

• DAX Futures: Indicating -6 open in Germany

Portfolio:

• Slightly Higher: On gains in my medical/biotech/tech sector longs

• Disclosed Trades: None

• Market Exposure: 50% Net Long