Stocks Slightly Higher into Final Hour on Less Emerging Markets Debt Angst, Yen Weakness, Short-Covering, Utility/Homebuilding Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 17.10 -5.73%

• Euro/Yen Carry Return Index 146.49 +.36%

• Emerging Markets Currency Volatility(VXY) 9.93 +1.43%

• S&P 500 Implied Correlation 57.41 +.07%

• ISE Sentiment Index 141.0 +78.48%

• Total Put/Call .86 -4.44%

• NYSE Arms .65 -62.56% 

Credit Investor Angst:

• North American Investment Grade CDS Index 71.72 -1.58%

• European Financial Sector CDS Index 104.88 +.83%

• Western Europe Sovereign Debt CDS Index 55.0 +3.13%

• Asia Pacific Sovereign Debt CDS Index 117.95 -.85%

• Emerging Market CDS Index 334.63 -.82%

• 2-Year Swap Spread 15.0 unch.

• TED Spread 19.0 -1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -3.25 +.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .05% +1.0 basis point

• Yield Curve 241.0 +2.0 basis points

• China Import Iron Ore Spot $124.30/Metric Tonne unch.

• Citi US Economic Surprise Index 59.0 -3.6 points

• Citi Emerging Markets Economic Surprise Index 7.1 +.4 point

• 10-Year TIPS Spread 2.14 +1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating +25 open in Japan

• DAX Futures: Indicating +27 open in Germany

Portfolio: 

• Slightly Higher: On gains in my index hedges and emerging markets shorts

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

• Market Exposure: Moved to 50% Net Long