Stocks Surging into Final Hour on Central Bank Hopes, Less Eurozone/Asian Debt Angst, Short-Covering, Homebuilding/Commodity Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Gaining
  

• Volume: Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 13.90 -2.18%

• Euro/Yen Carry Return Index 134.99 +.17%

• Emerging Markets Currency Volatility(VXY) 10.49 +.48%

• S&P 500 Implied Correlation 51.36 +2.01%

• ISE Sentiment Index 61.0 -14.08%

• Total Put/Call 1.05 +2.94%

• NYSE Arms .75 -44.19% 

Credit Investor Angst:

• North American Investment Grade CDS Index 77.98 -4.14%

• European Financial Sector CDS Index 154.66 -2.09%

• Western Europe Sovereign Debt CDS Index 96.09 +.10%

• Emerging Market CDS Index 323.86 -3.86%

• 2-Year Swap Spread 17.0 unch.

• TED Spread 23.75 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -9.75 unch.

Economic Gauges:

• 3-Month T-Bill Yield .03% unch.

• Yield Curve 224.0 -7 bps

• China Import Iron Ore Spot $125.20/Metric Tonne +1.05%

• Citi US Economic Surprise Index -11.90 -1.7 points

• Citi Emerging Markets Economic Surprise Index -31.70 +2.0 points

• 10-Year TIPS Spread 2.03 -2 bps

Overseas Futures:

• Nikkei Futures: Indicating +137 open in Japan

• DAX Futures: Indicating +36 open in Germany

Portfolio: 

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my (EEM) short

• Market Exposure: Moved to 75% Net Long