Stocks Rising into Final Hour on Diminished US Govt Shutdown Fears, Less Eurozone/Emerging Markets Debt Angst, Short-Covering, Healthcare/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 16.01 -3.56%

• Euro/Yen Carry Return Index 138.06 -.35%

• Emerging Markets Currency Volatility(VXY) 10.07 -.40%

• S&P 500 Implied Correlation 48.62 -1.06%

• ISE Sentiment Index 109.0 +73.02%

• Total Put/Call .87 -20.91%

• NYSE Arms .75 -53.56% 

Credit Investor Angst:

• North American Investment Grade CDS Index 80.48 -1.76%

• European Financial Sector CDS Index 139.26 -5.63%

• Western Europe Sovereign Debt CDS Index 82.0 -6.75%

• Emerging Market CDS Index 287.75 -2.21%

• 2-Year Swap Spread 13.25 unch.

• TED Spread 23.0 -1.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -6.0 +1.0 basis point

Economic Gauges:

• 3-Month T-Bill Yield .02% +2 basis points

• Yield Curve 231.0 +1 basis point

• China Import Iron Ore Spot $131.40/Metric Tonne unch.

• Citi US Economic Surprise Index 53.30 +2.8 points

• Citi Emerging Markets Economic Surprise Index .60 -5.6 points

• 10-Year TIPS Spread 2.20 +1 basis point

Overseas Futures:

• Nikkei Futures: Indicating +15 open in Japan

• DAX Futures: Indicating -6 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 50% Net Long