Stocks Higher into Final Hour on Diminishing US Debt Ceiling/Shutdown Worries, Falling Eurozone/Emerging Markets Debt Angst, Short-Covering, Homebuilding/Gaming Sector Strength

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Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 15.96 -2.85%

• Euro/Yen Carry Return Index 139.10 +.51%

• Emerging Markets Currency Volatility(VXY) 9.15 -1.82%

• S&P 500 Implied Correlation 45.93 -1.61%

• ISE Sentiment Index 84.0 +3.70%

• Total Put/Call .94 -1.05%

• NYSE Arms 1.33 +196.60% 

Credit Investor Angst:

• North American Investment Grade CDS Index 77.13 -1.83%

• European Financial Sector CDS Index 128.02 -1.97%

• Western Europe Sovereign Debt CDS Index 72.31 -7.6%

• Emerging Market CDS Index 275.78 -.90%

• 2-Year Swap Spread 13.25 unch.

• TED Spread 17.75 -2.0 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -7.50 +1.0 basis points

Economic Gauges:

• 3-Month T-Bill Yield .07% +2 basis points

• Yield Curve 234.0 unch.

• China Import Iron Ore Spot $133.10/Metric Tonne +.08%

• Citi US Economic Surprise Index 35.40 -.5 points

• Citi Emerging Markets Economic Surprise Index -4.60 -3.7 points

• 10-Year TIPS Spread 2.21 unch.

Overseas Futures:

• Nikkei Futures: Indicating +140 open in Japan

• DAX Futures: Indicating +16 open in Germany

Portfolio: 

• Higher: On gains in my medical/tech sector longs 

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

• Market Exposure: 50% Net Long