Stocks Surging into Final Hour on Less Eurozone Debt Angst, Better Economic Data, Short-Covering, Transport/Homebuilding Sector Strength

Broad Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• VIX 14.47 -14.23%
  

• ISE Sentiment Index 108.0 -3.57%

• Total Put/Call .98 -11.71%

• NYSE Arms .60 -21.27%

Credit Investor Angst:

• North American Investment Grade CDS Index 86.71 -3.09%

• European Financial Sector CDS Index 157.70 -5.86%

• Western Europe Sovereign Debt CDS Index 107.15 -.17%

• Emerging Market CDS Index 234.57 -.97%

• 2-Year Swap Spread 15.50 +.5 bp

• TED Spread 18.0 +.5 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -19.5 +2.0 bps

Economic Gauges:

• 3-Month T-Bill Yield .11% unch.

• Yield Curve 166.0 +2 bps

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

• Citi US Economic Surprise Index 6.70 -1.0 point

• 10-Year TIPS Spread 2.53 +2 bps

Overseas Futures:

• Nikkei Futures: Indicating +193 open in Japan

• DAX Futures: Indicating +41 open in Germany

Portfolio: 

• Higher: On gains in my tech/retail/medical/biotech sector longs
• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my (EEM) short, then added them back
• Market Exposure: 50% Net Long