Stocks Slightly Higher into Final Hour on Stable Long-Term Rates, Lower Energy Prices, Short-Covering, Homebuilding/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Light

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 16.62 +.79%

• Euro/Yen Carry Return Index 135.66 -.12%

• Emerging Markets Currency Volatility(VXY) 11.84 -2.07%

• S&P 500 Implied Correlation 555.19 +.97%

• ISE Sentiment Index 90.0 -53.61%

• Total Put/Call .95 +18.75%

• NYSE Arms 1.06 +14.62% 

Credit Investor Angst:

• North American Investment Grade CDS Index 82.48 -1.08%

• European Financial Sector CDS Index 146.86 -1.39%

• Western Europe Sovereign Debt CDS Index 85.50 unch.

• Emerging Market CDS Index 340.79 -1.21%

• 2-Year Swap Spread 17.25 +1.0 bp

• TED Spread 24.0 +1.0 bp

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

Economic Gauges:

• 3-Month T-Bill Yield .02% -1 bp

• Yield Curve 235.0 -3 bps

• China Import Iron Ore Spot $138.30/Metric Tonne -.14%

• Citi US Economic Surprise Index 30.60 +5.2 points

• Citi Emerging Markets Economic Surprise Index -22.40 +.6 point

• 10-Year TIPS Spread 2.12 -5 bps

Overseas Futures:

• Nikkei Futures: Indicating +65 open in Japan

• DAX Futures: Indicating -30 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