Stocks Slightly Higher into Final Hour on Debt Ceiling Hopes, Short-Covering, Earnings Optimism, I-Banking/Oil Service Sector Strength

Today's Market Take:

Broad Market Tone:

• Advance/Decline Line: Slightly Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• VIX 12.51 -7.81%

• ISE Sentiment Index 160.0 +5.96%

• Total Put/Call .72 -8.86%

• NYSE Arms .98 -34.10%

Credit Investor Angst:

• North American Investment Grade CDS Index 87.15 -.52%

• European Financial Sector CDS Index 135.89 +2.76%

• Western Europe Sovereign Debt CDS Index 97.67 -1.42%

• Emerging Market CDS Index 214.31 +.10%

• 2-Year Swap Spread 14.25 -.5 bp

• TED Spread 23.0 +.5 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -17.50 -1.5 bps

Economic Gauges:

• 3-Month T-Bill Yield .07% -1 bp

• Yield Curve 159.0 -2 bps

• China Import Iron Ore Spot $145.10/Metric Tonne -.21%

• Citi US Economic Surprise Index 2.20 -3.0 points

• 10-Year TIPS Spread 2.54 +1 bp

Overseas Futures:

• Nikkei Futures: Indicating +77 open in Japan

• DAX Futures: Indicating +24 open in Germany

Portfolio:

• Slightly Lower: On losses in my tech sector longs and emerging markets shorts

• Disclosed Trades: None

• Market Exposure: 50% Net Long