Stocks Rising into Final Hour on Less Eurozone Debt Angst, More Dovish Fed Commentary, Earnings Optimism, Homebuilding/Gaming Sector Strength

Broad Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Light

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• VIX 12.36 -14.11%

• ISE Sentiment Index 119.0 -37.68%

• Total Put/Call .78 -19.59%

• NYSE Arms .75 -35.02%

Credit Investor Angst:

• North American Investment Grade CDS Index 89.09 +8.8% (new series)

• European Financial Sector CDS Index 166.51 +2.69%

• Western Europe Sovereign Debt CDS Index 100.90 -.10%

• Emerging Market CDS Index 244.35 -.73%

• 2-Year Swap Spread 17.0 -1.0 bp

• TED Spread 21.75 +.75 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -19.25 +2.0 bps

Economic Gauges:

• 3-Month T-Bill Yield .07% +1 bp

• Yield Curve 170.0 +4 bps

• China Import Iron Ore Spot $134.10/Metric Tonne -.22%

• Citi US Economic Surprise Index 27.20 +.3 point

• 10-Year TIPS Spread 2.54 +2 bps

Overseas Futures:

• Nikkei Futures: Indicating +169 open in Japan

• DAX Futures: Indicating +9 open in Germany

Portfolio: 

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