Stocks Higher into Final Hour on Less Eurozone/Asian Debt Angst, Lower Long-Term Rates, Window-Dressing, Homebuilding/Healthcare Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 16.72 -2.85%

• Euro/Yen Carry Return Index 133.78 +.92%

• Emerging Markets Currency Volatility(VXY) 11.07 -1.77%

• S&P 500 Implied Correlation 58.28 -1.49%

• ISE Sentiment Index 62.0 -24.29%

• Total Put/Call .99 +16.47%

• NYSE Arms 1.16 +23.78% 

Credit Investor Angst:

• North American Investment Grade CDS Index 85.87 -2.42%

• European Financial Sector CDS Index 163.30 -2.79%

• Western Europe Sovereign Debt CDS Index 95.0 -1.24%

• Emerging Market CDS Index 318.38 -4.93%

• 2-Year Swap Spread 15.0 +.5 bp

• TED Spread 22.75 +.75 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -10.50 +1.25 bp

Economic Gauges:

• 3-Month T-Bill Yield .05% -1 bp

• Yield Curve 211.0 -4 bps

• China Import Iron Ore Spot $115.30/Metric Tonne +1.32%

• Citi US Economic Surprise Index -7.10 +.9 point

• Citi Emerging Markets Economic Surprise Index -36.30 +.8 point 

• 10-Year TIPS Spread 1.98 +3 bps

Overseas Futures:

• Nikkei Futures: Indicating +357 open in Japan

• DAX Futures: Indicating -8 open in Germany

Portfolio: 

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added them back

• Market Exposure: 50% Net Long