Stocks Slightly Higher into Afternoon on Central Bank Hopes, Less Emerging Markets Debt Angst, Investor Performance Angst, Homebuilding/Defense Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 12.69 +4.10%

• Euro/Yen Carry Return Index 141.07 +.04%

• Emerging Markets Currency Volatility(VXY) 8.39 -2.10%

• S&P 500 Implied Correlation 33.41 unch.

• ISE Sentiment Index 99.0 -35.29%

• Total Put/Call .76 +1.33%

• NYSE Arms .97 +23.92% 

Credit Investor Angst:

• North American Investment Grade CDS Index 70.73 +.54%

• European Financial Sector CDS Index 105.79 -1.17%

• Western Europe Sovereign Debt CDS Index 64.0 +1.0%

• Emerging Market CDS Index 279.12 -1.91%

• 2-Year Swap Spread 10.5 +.25 basis point

• TED Spread 17.25 +.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -2.75 +.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .07% unch.

• Yield Curve 239.0 -2 basis points

• China Import Iron Ore Spot $137.0/Metric Tonne +.15%

• Citi US Economic Surprise Index 5.00 -1.9 points

• Citi Emerging Markets Economic Surprise Index -12.10 +.5 point

• 10-Year TIPS Spread 2.20 +1 basis point

Overseas Futures:

• Nikkei Futures: Indicating +126 open in Japan

• DAX Futures: Indicating +6 open in Germany

Portfolio: 

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

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 25% Net Long