Stocks Surging into Afternoon on Diminishing Global Growth Fears, Short-Covering, Financial/Biotech Sector Strength

Broad Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Around Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• VIX 12.74 -10.78%
  

• ISE Sentiment Index 133.0 -3.62%

• Total Put/Call .86 -5.49%

• NYSE Arms .94 -14.17%

Credit Investor Angst:

• North American Investment Grade CDS Index 86.42 -2.72%

• European Financial Sector CDS Index 145.57 -.62%

• Western Europe Sovereign Debt CDS Index 102.0 -.79%

• Emerging Market CDS Index 225.42 -2.14%

• 2-Year Swap Spread 16.0 -.75 bp

• TED Spread 23.5 +.25 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -14.25 -2.25 bps

Economic Gauges:

• 3-Month T-Bill Yield .06% -1 bp

• Yield Curve 173.0 +1 bp

• China Import Iron Ore Spot $153.2/Metric Tonne +.46%

• Citi US Economic Surprise Index -28.1 -.2 point

• 10-Year TIPS Spread 2.56 unch.

Overseas Futures:

• Nikkei Futures: Indicating +104 open in Japan

• DAX Futures: Indicating +4 open in Germany

Portfolio:

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