Stocks Reversing Higher into Final Hour on Central Bank Hopes, Earnings Optimism, Short-Covering, Tech/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 13.03 -1.14%
• Euro/Yen Carry Return Index 137.47 -.38%
• Emerging Markets Currency Volatility(VXY) 9.23 +1.43%
• S&P 500 Implied Correlation 50.93 -3.01%

• ISE Sentiment Index 101.0 +16.0%

• Total Put/Call .93 -4.12%

• NYSE Arms .84 -3.43% 

Credit Investor Angst:

• North American Investment Grade CDS Index 76.71 +.46%

• European Financial Sector CDS Index 148.64 +3.78%

• Western Europe Sovereign Debt CDS Index 89.0 -2.20%

• Emerging Market CDS Index 294.91 +.64%

• 2-Year Swap Spread 15.0 -.75 bp

• TED Spread 24.75 +.25 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -9.5 -.25 bp

Economic Gauges:

• 3-Month T-Bill Yield .02% unch.

• Yield Curve 225.0 +2 bps

• China Import Iron Ore Spot $132.10/Metric Tonne unch.

• Citi US Economic Surprise Index -4.70 +2.8 points
• Citi Emerging Markets Economic Surprise Index -29.80 +1.0 point

• 10-Year TIPS Spread 2.15 unch.

Overseas Futures:

• Nikkei Futures: Indicating -132 open in Japan

• DAX Futures: Indicating +31 open in Germany

Portfolio: 

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