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

Broad Equity Market Tone:

• Advance/Decline Line: About Even
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 14.12 +1.66%

• Euro/Yen Carry Return Index 148.95 +1.60%

• Emerging Markets Currency Volatility(VXY) 8.72 +.81%

• S&P 500 Implied Correlation 54.22 +1.65%

• ISE Sentiment Index 182.0 +29.08%

• Total Put/Call .90 +18.42%

• NYSE Arms .68 -13.39% 

Credit Investor Angst:

• North American Investment Grade CDS Index 62.25 -.57%

• European Financial Sector CDS Index 85.75 -1.44%

• Western Europe Sovereign Debt CDS Index 49.68 -2.59%

• Asia Pacific Sovereign Debt CDS Index 94.05 -3.02%

• Emerging Market CDS Index 295.91 -1.96%

• China Blended Corporate Spread Index 359.15 -.53%

• 2-Year Swap Spread 13.5 +.25 basis point

• TED Spread 19.0 +.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -3.25 +3.0 basis points

Economic Gauges:

• 3-Month T-Bill Yield .05% unch.

• Yield Curve 239.0 +3.0 basis points

• China Import Iron Ore Spot $116.90/Metric Tonne +.17%

• Citi US Economic Surprise Index -28.0 -.1 point

• Citi Emerging Markets Economic Surprise Index 12.0 unch.

• 10-Year TIPS Spread 2.22 +3.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating +158 open in Japan

• DAX Futures: Indicating -18 open in Germany

Portfolio: 

• Slightly Lower: On losses in my biotech/retail sector longs and emerging markets shorts

• Disclosed Trades: None

• Market Exposure: 50% Net Long