Stocks Slightly Higher into Afternoon on Less Eurozone Debt Angst, Short-Covering, Homebuilding/Financial Sector Strength

Broad Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Light

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• VIX 12.81 -1.0%
  

• ISE Sentiment Index 99.0 -2.9%

• Total Put/Call .99 -6.6%

• NYSE Arms .79 -8.83%

Credit Investor Angst:

• North American Investment Grade CDS Index 87.30 -2.42%

• European Financial Sector CDS Index 149.44 -4.65%

• Western Europe Sovereign Debt CDS Index 103.10 -1.75%

• Emerging Market CDS Index 230.35 +1.78%

• 2-Year Swap Spread 15.75 -.25 bp

• TED Spread 21.0 -1.75 bps

• 3-Month EUR/USD Cross-Currency Basis Swap -17.0 +1.0 bp

Economic Gauges:

• 3-Month T-Bill Yield .08% +2 bps

• Yield Curve 172.0 +2 bps

• China Import Iron Ore Spot $155.10/Metric Tonne n/a

• Citi US Economic Surprise Index -9.0 +1.0 point

• 10-Year TIPS Spread 2.56 +2 bps

Overseas Futures:

• Nikkei Futures: Indicating +27 open in Japan

• DAX Futures: Indicating +1 open in Germany

Portfolio:

• Slightly Lower: On losses in my biotech/tech sector longs and index hedges
• Disclosed Trades: None
• Market Exposure: 50% Net Long