Stocks Rising into Final Hour on Less Asian/Eurozone Debt Angst, Quarter-End Window Dressing, Short-Covering, Financial/Transport Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 18.13 -9.85%
• Euro/Yen Carry Return Index 133.51 -.11%
• Emerging Markets Currency Volatility(VXY) 11.30 -3.67%
• S&P 500 Implied Correlation 60.04 -2.09%

• ISE Sentiment Index 92.0 -9.52%

• Total Put/Call 1.09 +7.92%

• NYSE Arms .61 -54.35% 

Credit Investor Angst:

• North American Investment Grade CDS Index 91.43 -6.42%

• European Financial Sector CDS Index 181.04 -4.81%

• Western Europe Sovereign Debt CDS Index 97.0 +1.57%

• Emerging Market CDS Index 350.89 -5.24%

• 2-Year Swap Spread 17.0 -2.5 bps

• TED Spread 22.0 -1.5 bps

• 3-Month EUR/USD Cross-Currency Basis Swap -11.75 +1.0 bp

Economic Gauges:

• 3-Month T-Bill Yield .06% +2 bps

• Yield Curve 219.0 +2 bps

• China Import Iron Ore Spot $114.0/Metric Tonne -2.23%

• Citi US Economic Surprise Index 1.30 +9.4 points
• Citi Emerging Markets Economic Surprise Index -38.20 +.4 point 

• 10-Year TIPS Spread 1.96 +4 bps

Overseas Futures:

• Nikkei Futures: Indicating +325 open in Japan

• DAX Futures: Indicating +30 open in Germany

Portfolio: 

• Higher: On gains in my tech/biotech/retail sector longs
• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
• Market Exposure: Moved to 75% Net Long