Stocks Rising into Final Hour on Earnings Optimism, Short-Covering, Homebuilding/Gaming Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Mixed
  

• Volume: Slightly Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 13.20 -1.64%

• Euro/Yen Carry Return Index 140.02 +.09%

• Emerging Markets Currency Volatility(VXY) 8.33 -.24%

• S&P 500 Implied Correlation 36.79 -.49%

• ISE Sentiment Index 65.0 -39.25%

• Total Put/Call .78 -9.30%

• NYSE Arms 1.01 -42.74% 

Credit Investor Angst:

• North American Investment Grade CDS Index 71.95 -.02%

• European Financial Sector CDS Index 122.61 +1.99%

• Western Europe Sovereign Debt CDS Index 70.0 -1.03%

• Emerging Market CDS Index 261.08 +.79%

• 2-Year Swap Spread 13.25 unch.

• TED Spread 20.75 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -3.25 +1.25 basis points

Economic Gauges:

• 3-Month T-Bill Yield .03% unch.

• Yield Curve 221.0 +2 basis points

• China Import Iron Ore Spot $133.50/Metric Tonne +.23%

• Citi US Economic Surprise Index 17.10 -1.1 points

• Citi Emerging Markets Economic Surprise Index -6.40 +2.7 points

• 10-Year TIPS Spread 2.17 +1 basis point

Overseas Futures:

• Nikkei Futures: Indicating -31 open in Japan

• DAX Futures: Indicating -1 open in Germany

Portfolio: 

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

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

• Market Exposure: 50% Net Long