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

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 14.62 -5.68%

• Euro/Yen Carry Return Index 146.47 -.08%

• Emerging Markets Currency Volatility(VXY) 8.89 +1.72%

• S&P 500 Implied Correlation 52.63 -2.82%

• ISE Sentiment Index 129.0 +46.59%

• Total Put/Call .86 -3.37%

• NYSE Arms .65 -49.78% 

Credit Investor Angst:

• North American Investment Grade CDS Index 64.76 -2.16%

• European Financial Sector CDS Index 91.98 +2.93%

• Western Europe Sovereign Debt CDS Index 53.0 +.65%

• Asia Pacific Sovereign Debt CDS Index 104.86 +.10%

• Emerging Market CDS Index 329.02 -4.2%

• China Blended Corporate Spread Index 356.92 +.16%

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

• TED Spread 19.0 +.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -5.0 +.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .05% unch.

• Yield Curve 243.0 +1.0 basis point

• China Import Iron Ore Spot $122.90/Metric Tonne -.81%

• Citi US Economic Surprise Index -6.50 -2.5 points

• Citi Emerging Markets Economic Surprise Index 15.80 -3.2 points

• 10-Year TIPS Spread 2.14 -1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating +118 open in Japan

• DAX Futures: Indicating +1 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 50% Net Long