Stocks Reversing Higher into Final Hour on Central Bank Hopes, Lower Long-Term Rates, Short-Covering, Homebuilding/Metals & Mining 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) 13.51 -8.16%

• Euro/Yen Carry Return Index 139.56 +.16%

• Emerging Markets Currency Volatility(VXY) 8.54 -2.73%

• S&P 500 Implied Correlation 38.81 -7.81%

• ISE Sentiment Index 81.0 unch.

• Total Put/Call .90 -3.23%

• NYSE Arms 1.33 +107.29% 

Credit Investor Angst:

• North American Investment Grade CDS Index 71.34 -3.06%

• European Financial Sector CDS Index 124.15 +3.16%

• Western Europe Sovereign Debt CDS Index 70.53 +.76%

• Emerging Market CDS Index 264.42 +.26%

• 2-Year Swap Spread 13.50 unch.

• TED Spread 20.75 +5.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -6.25 +1.25 basis points

Economic Gauges:

• 3-Month T-Bill Yield .04% -6 basis points

• Yield Curve 227.0 -7 basis points

• China Import Iron Ore Spot $134.40/Metric Tonne +.52%

• Citi US Economic Surprise Index 24.0 -2.8 points

• Citi Emerging Markets Economic Surprise Index -8.60 -1.4 points

• 10-Year TIPS Spread 2.17 -2 basis points

Overseas Futures:

• Nikkei Futures: Indicating +18 open in Japan

• DAX Futures: Indicating +14 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long