Stocks Higher into Final Hour on Lower Long-Term Rates, Short-Covering, Investor Performance Angst, Homebuilding/Heatlhcare Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 12.54 -1.95%

• Euro/Yen Carry Return Index 143.31 -.03%

• Emerging Markets Currency Volatility(VXY) 8.64 +.58%

• S&P 500 Implied Correlation 53.87 -2.53%

• ISE Sentiment Index 146.0 +1.39%

• Total Put/Call .75 -2.60%

• NYSE Arms 1.17 +11.45% 

Credit Investor Angst:

• North American Investment Grade CDS Index 68.34 +.52%

• European Financial Sector CDS Index 96.54 -2.67%

• Western Europe Sovereign Debt CDS Index 60.0 -3.23%

• Emerging Market CDS Index 291.88 +.28%

• 2-Year Swap Spread 8.25 -1.25 basis points

• TED Spread 17.0 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -2.75 -1.5 basis points

Economic Gauges:

• 3-Month T-Bill Yield .07% +1 basis point

• Yield Curve 241.0 -4 basis points

• China Import Iron Ore Spot $135.90/Metric Tonne -.44%

• Citi US Economic Surprise Index 3.20 -1.5 points

• Citi Emerging Markets Economic Surprise Index -15.70 -.5 point

• 10-Year TIPS Spread 2.17 -2 basis points

Overseas Futures:

• Nikkei Futures: Indicating -70 open in Japan

• DAX Futures: Indicating +16 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 50% Net Long