Stocks Surging into Final Hour on Less Eurozone/Emerging Markets Debt Angst, Yen Weakness, Diminished US Debt Ceiling Worries, Biotech/Commodity Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Slightly Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 14.32 -6.16%

• Euro/Yen Carry Return Index 146.02 +.33%

• Emerging Markets Currency Volatility(VXY) 9.13 -1.83%

• S&P 500 Implied Correlation 51.52 -1.62%

• ISE Sentiment Index 97.0 -23.62%

• Total Put/Call .89 -4.30%

• NYSE Arms .72 -54.50% 

Credit Investor Angst:

• North American Investment Grade CDS Index 65.07 -3.93%

• European Financial Sector CDS Index 89.54 -5.41%

• Western Europe Sovereign Debt CDS Index 53.0 unch.

• Asia Pacific Sovereign Debt CDS Index 106.48 -1.96%

• Emerging Market CDS Index 319.93 -2.79%

• China Blended Corporate Spread Index 361.71 -.16%

• 2-Year Swap Spread 12.25 +.25 basis point

• TED Spread 19.0 +1.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -4.25 -.25 basis point

Economic Gauges:

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

• Yield Curve 239.0 +2.0 basis points

• China Import Iron Ore Spot $120.0/Metric Tonne -.66%

• Citi US Economic Surprise Index 25.70 +1.1 point

• Citi Emerging Markets Economic Surprise Index 13.10 +.7 point

• 10-Year TIPS Spread 2.17 -1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating +230 open in Japan

• DAX Futures: Indicating +25 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long