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

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Slightly Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 13.32 -1.19%

• Euro/Yen Carry Return Index 139.58 -.03%

• Emerging Markets Currency Volatility(VXY) 8.34 -2.34%

• S&P 500 Implied Correlation 36.92 -3.78%

• ISE Sentiment Index 81.0 unch.

• Total Put/Call .67 -23.86%

• NYSE Arms 1.35 +19.47% 

Credit Investor Angst:

• North American Investment Grade CDS Index 71.20 -.24%

• European Financial Sector CDS Index 120.37 -3.01%

• Western Europe Sovereign Debt CDS Index 71.32 +1.12%

• Emerging Market CDS Index 256.60 -2.71%

• 2-Year Swap Spread 13.25 -.25 basis point

• TED Spread 21.50 +.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -6.5 -.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .03% -1 basis point

• Yield Curve 227.0 -7 unch.

• China Import Iron Ore Spot $134.40/Metric Tonne unch.

• Citi US Economic Surprise Index 23.20 -.8 point

• Citi Emerging Markets Economic Surprise Index -9.60 -1.0 point

• 10-Year TIPS Spread 2.18 +1 basis point

Overseas Futures:

• Nikkei Futures: Indicating +124 open in Japan

• DAX Futures: Indicating -5 open in Germany

Portfolio: 

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

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

• Market Exposure: 75% Net Long