Stocks Higher into Final Hour on Less Eurozone Debt Angst, Short-Covering, Bargain-Hunting, Energy/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 16.39 -2.27%

• Euro/Yen Carry Return Index 135.89 +.28%

• Emerging Markets Currency Volatility(VXY) 12.32 +7.22%

• S&P 500 Implied Correlation 53.61 -1.72%

• ISE Sentiment Index 194.0 +133.73%

• Total Put/Call .77 -24.51%

• NYSE Arms .76 -71.75% 

Credit Investor Angst:

• North American Investment Grade CDS Index 82.90 -1.40%

• European Financial Sector CDS Index 148.92 -1.01%

• Western Europe Sovereign Debt CDS Index 85.50 -3.53%

• Emerging Market CDS Index 343.44 +.36%

• 2-Year Swap Spread 16.25 -2.0 bps

• TED Spread 23.0 +.25 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -9.75 +.25 bp

Economic Gauges:

• 3-Month T-Bill Yield .03% unch.

• Yield Curve 238.0 +2 bps

• China Import Iron Ore Spot $138.50/Metric Tonne -.14%

• Citi US Economic Surprise Index 25.40 -.6 point

• Citi Emerging Markets Economic Surprise Index -23.0 unch.

• 10-Year TIPS Spread 2.17 unch.

Overseas Futures:

• Nikkei Futures: Indicating +58 open in Japan

• DAX Futures: Indicating -12 open in Germany

Portfolio: 

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

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

• Market Exposure: 25% Net Long