Stocks Higher into Final Hour on Less Eurozone Debt Angst, Buyout Speculation, Short-Covering, Energy/Retail Sector Strength

Broad Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• VIX 12.34 -.96%
  

• ISE Sentiment Index 111.0 -13.28%

• Total Put/Call 1.03 +17.05%

• NYSE Arms .92 -32.75%

Credit Investor Angst:

• North American Investment Grade CDS Index 85.68 -1.19%

• European Financial Sector CDS Index 142.72 -1.1%

• Western Europe Sovereign Debt CDS Index 99.77 -.45%

• Emerging Market CDS Index 230.50 -.72%

• 2-Year Swap Spread 15.0 -.25 bp

• TED Spread 18.75 -.75 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -17.5 -.25 bp

Economic Gauges:

• 3-Month T-Bill Yield .10% unch.

• Yield Curve 175.0 +1 bp

• China Import Iron Ore Spot $158.0/Metric Tonne+.51%

• Citi US Economic Surprise Index -2.50 -.5 point

• 10-Year TIPS Spread 2.57 +2 bps

Overseas Futures:

• Nikkei Futures: Indicating +68 open in Japan

• DAX Futures: Indicating -3 open in Germany

Portfolio: 

• Slightly Higher: On gains in my tech/retail sector longs
• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
• Market Exposure: Moved to 50% Net Long