Stocks Rebounding on More Dovish Fed Commentary, Short-Covering, Homebuilding/Metals Sector Strength

Today's Market Take:

Broad Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Slightly Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• VIX 17.13 -9.79%
  

• ISE Sentiment Index 105.0 +23.53%

• Total Put/Call 1.09 -4.39%

• NYSE Arms .85 -70.47%

Credit Investor Angst:

• North American Investment Grade CDS Index 89.28 -1.01%

• European Financial Sector CDS Index 167.54 +11.5%

• Western Europe Sovereign Debt CDS Index 107.33 +8.85%

• Emerging Market CDS Index 237.60 +.79%

• 2-Year Swap Spread 15.0 +.75 bp

• TED Spread 17.5 +.5 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -21.5 -1.75 bps

Economic Gauges:

• 3-Month T-Bill Yield .11% -1 bp

• Yield Curve 164.0 unch.

• China Import Iron Ore Spot $151.90/Metric Tonne unch.

• Citi US Economic Surprise Index 7.70 +12.7 points

• 10-Year TIPS Spread 2.51 -1 bp

Overseas Futures:

• Nikkei Futures: Indicating +5 open in Japan

• DAX Futures: Indicating +36 open in Germany

Portfolio: 

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