Stocks Surging into Final Hour on Central Bank Hopes, Nikkei Bounce, Short-Covering, Financial/Transport Sector Strength

Today's Market Take:

Broad Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Light

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• VIX 15.27 -8.18%

• ISE Sentiment Index 78.0 -21.21%

• Total Put/Call 1.16 -4.13%

• NYSE Arms .90 +39.83%

Credit Investor Angst:

• North American Investment Grade CDS Index 81.11 -3.31%

• European Financial Sector CDS Index 152.23 -7.51%

• Western Europe Sovereign Debt CDS Index 87.0 +3.0%

• Emerging Market CDS Index 299.99 -1.7%

• 2-Year Swap Spread 17.25 unch.

• TED Spread 23.5 +.75 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -12.5 +.25 bp

Economic Gauges:

• 3-Month T-Bill Yield .04% -1 bp

• Yield Curve 186.0 +7 bps

• China Import Iron Ore Spot $110.90/Metric Tonne -2.63%

• Citi US Economic Surprise Index -32.30 -3.3 points

• 10-Year TIPS Spread 2.14 +1 bp

Overseas Futures:

• Nikkei Futures: Indicating +383 open in Japan

• DAX Futures: Indicating -8 open in Germany

Portfolio: 

• Higher: On gains in my biotech/medical/retail/tech sector longs and emerging markets shorts

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

• Market Exposure: 50% Net Long