Stocks Reversing Slightly Higher into Final Hour on Central Bank Hopes, Short-Covering, Bargain-Hunting, Financial/Medical Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: About Even
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 19.27 -5.21%
• Euro/Yen Carry Return Index 137.20 +.07%
• Emerging Markets Currency Volatility(VXY) 9.63 +.31%
• S&P 500 Implied Correlation 52.92 -10.11%

• ISE Sentiment Index 104.0 -6.31%

• Total Put/Call 1.34 +41.05%

• NYSE Arms .76 -61.43% 

Credit Investor Angst:

• North American Investment Grade CDS Index 83.02 -1.75%

• European Financial Sector CDS Index 138.58 +.27%

• Western Europe Sovereign Debt CDS Index 78.0 unch.

• Emerging Market CDS Index 289.54 -.45%

• 2-Year Swap Spread 13.0 +1.5 basis points

• TED Spread 21.0 +.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -10.25 +.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .04% unch.

• Yield Curve 229.0 +4 basis points

• China Import Iron Ore Spot $131.80/Metric Tonne +.08%

• Citi US Economic Surprise Index 43.30 -.4 point
• Citi Emerging Markets Economic Surprise Index 1.20 +.5 point

• 10-Year TIPS Spread 2.21 +3 basis points

Overseas Futures:

• Nikkei Futures: Indicating +137 open in Japan

• DAX Futures: Indicating +36 open in Germany

Portfolio: 

• Slightly Higher: On gains in my medical /retail/tech sector longs and index hedges
• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
• Market Exposure: Moved to 50% Net Long