Stocks Slightly Higher into Final Hour on Less Eurozone/Emerging Markets Debt Angst, Stable Long-Term Rates, Short-Covering, Financial/Healthcare Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 13.76 -3.30%

• Euro/Yen Carry Return Index 148.40 -.72%

• Emerging Markets Currency Volatility(VXY) 9.39 -2.49%

• S&P 500 Implied Correlation 51.24 +.57%

• ISE Sentiment Index 115.0 +4.55%

• Total Put/Call .91 +9.64%

• NYSE Arms 1.18 -7.34% 

Credit Investor Angst:

• North American Investment Grade CDS Index 62.62 -1.04%

• European Financial Sector CDS Index 83.45 -1.85%

• Western Europe Sovereign Debt CDS Index 54.0 -3.57%

• Emerging Market CDS Index 274.12 -1.66%

• 2-Year Swap Spread 10.75 +.5 basis point

• TED Spread 18.0 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -3.25 +.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .06% unch.

• Yield Curve 260.0 unch.

• China Import Iron Ore Spot $135.0/Metric Tonne unch.
  

• Citi US Economic Surprise Index 53.40 +.1 point

• Citi Emerging Markets Economic Surprise Index -.4 +3.7 points

• 10-Year TIPS Spread 2.25 unch.

Overseas Futures:

• Nikkei Futures: Indicating -206 open in Japan

• DAX Futures: Indicating +5 open in Germany

Portfolio: 

• Slightly Higher: On gains in my tech/medical/retail sector longs and emerging markets shorts 

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

• Market Exposure: Moved to 50% Net Long