Stocks Slightly Higher into Afternoon on Diminished Global Growth Fears, Less Eurozone Debt Angst, Short-Covering, Homebuilding/Defense Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Mixed
  

• Volume: Slightly Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 13.0 +1.01%

• Euro/Yen Carry Return Index 147.56 +.02%

• Emerging Markets Currency Volatility(VXY) 8.65 -1.48%

• S&P 500 Implied Correlation 52.75 +5.4%

• ISE Sentiment Index 153.0 +53.0%

• Total Put/Call .82 +9.33%

• NYSE Arms 1.24 -12.50% 

Credit Investor Angst:

• North American Investment Grade CDS Index 65.75 +.62%

• European Financial Sector CDS Index 88.39 +.78%

• Western Europe Sovereign Debt CDS Index 48.0 -4.0%

• Emerging Market CDS Index 301.86 +3.64%

• 2-Year Swap Spread 14.0 +.5 basis point

• TED Spread 20.75 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -2.0 unch.

Economic Gauges:

• 3-Month T-Bill Yield .03% unch.

• Yield Curve 246.0 +1.0 basis point

• China Import Iron Ore Spot $123.50/Metric Tonne +.24%

• Citi US Economic Surprise Index 63.40 -.7 point

• Citi Emerging Markets Economic Surprise Index 4.8 +.3 point

• 10-Year TIPS Spread 2.25 +1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating +45 open in Japan

• DAX Futures: Indicating +21 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long