Stocks Rising into Final Hour on Central Bank Hopes, Short-Covering, Performance Angst, Transport/Financial Sector Strength

Broad Market Tone:

• Advance/Decline Line: About Even
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• VIX 13.03 +2.04%

• ISE Sentiment Index 108.0 +9.1%

• Total Put/Call .78 -2.50%

• NYSE Arms .61 +9.26%

Credit Investor Angst:

• North American Investment Grade CDS Index 71.63 -1.48%

• European Financial Sector CDS Index 136.52 -2.79%

• Western Europe Sovereign Debt CDS Index 88.67 +.76%

• Emerging Market CDS Index 241.69 +2.59%

• 2-Year Swap Spread 14.25 unch.

• TED Spread 23.75 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -15.75 -.5 bp

Economic Gauges:

• 3-Month T-Bill Yield .04% unch.

• Yield Curve 170.0 -3 bps

• China Import Iron Ore Spot $126.40/Metric Tonne -1.33%

• Citi US Economic Surprise Index -10.60 -2.9 points

• 10-Year TIPS Spread 2.29 -3 bps

Overseas Futures:

• Nikkei Futures: Indicating +129 open in Japan

• DAX Futures: Indicating -1 open in Germany

Portfolio: 

• Slightly Higher: On gains in my medical/tech/retail sector longs

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges, then covered some of them

• Market Exposure: 75% Net Long