Stocks Surging into Final Hour on Diminishing US Debt Ceiling/Shutdown Worries, Central Bank Hopes, Short-Covering, Financial/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Every Sector Rising
  

• Volume: Slightly Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 16.39 -16.33%
• Euro/Yen Carry Return Index 138.58 +.96%
• Emerging Markets Currency Volatility(VXY) 9.37 -2.40%
• S&P 500 Implied Correlation 46.78 -15.23%

• ISE Sentiment Index 88.0 -19.27%

• Total Put/Call .96 -26.72%

• NYSE Arms .44 -47.05% 

Credit Investor Angst:

• North American Investment Grade CDS Index 78.90 -5.26%

• European Financial Sector CDS Index 130.728 -5.83%

• Western Europe Sovereign Debt CDS Index 78.28 +.37%

• Emerging Market CDS Index 278.99 -3.67%

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

• TED Spread 19.75 -1.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -8.50 +1.75 basis points

Economic Gauges:

• 3-Month T-Bill Yield .05% +1 basis point

• Yield Curve 234.0 +5 basis points

• China Import Iron Ore Spot $133.0/Metric Tonne +.91%

• Citi US Economic Surprise Index 35.90 -7.4 points
• Citi Emerging Markets Economic Surprise Index -.90 -2.1 points

• 10-Year TIPS Spread 2.21 unch.

Overseas Futures:

• Nikkei Futures: Indicating +230 open in Japan

• DAX Futures: Indicating +52 open in Germany

Portfolio: 

• Higher: On gains in my medical /retail/tech/biotech sector longs 
• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my (EEM) short, then added them back
• Market Exposure: 50% Net Long