Stocks Rising into Final Hour on Central Bank Hopes, Less Emerging Markets Debt Angst, Short-Covering, Homebuilding/Healthcare Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 12.32 -1.60%

• Euro/Yen Carry Return Index 140.39 +.60%

• Emerging Markets Currency Volatility(VXY) 8.87 -2.21%

• S&P 500 Implied Correlation 33.70 -6.26%

• ISE Sentiment Index 144.0 +23.08%

• Total Put/Call .83 +2.47%

• NYSE Arms .62 +30.62% 

Credit Investor Angst:

• North American Investment Grade CDS Index 72.03 +.02%

• European Financial Sector CDS Index 109.13 -.34%

• Western Europe Sovereign Debt CDS Index 62.33 -2.61%

• Emerging Market CDS Index 291.85 -2.26%

• 2-Year Swap Spread 11.0 unch.

• TED Spread 16.75 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -2.75 +.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .07% unch.

• Yield Curve 241.0 -1 basis point

• China Import Iron Ore Spot $136.60/Metric Tonne +.37%

• Citi US Economic Surprise Index 11.50 -6.5 points

• Citi Emerging Markets Economic Surprise Index -12.10 +3.8 points

• 10-Year TIPS Spread 2.19 +1 basis point

Overseas Futures:

• Nikkei Futures: Indicating +219 open in Japan

• DAX Futures: Indicating -7 open in Germany

Portfolio: 

• Slightly Lower: On losses in my tech/retail sector longs and emerging markets shorts

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

• Market Exposure: Moved to 75% Net Long