Stocks Reversing Higher into Final Hour on Central Bank Hopes, Short-Covering, Biotech/Utility Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Mixed
  

• Volume: Light

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 13.11 +1.55%

• Euro/Yen Carry Return Index 147.82 -.09%

• Emerging Markets Currency Volatility(VXY) 7.74 -.26%

• S&P 500 Implied Correlation 56.73 -.70%

• ISE Sentiment Index 113.0 unch.

• Total Put/Call .87 -9.37% 

• NYSE Arms 1.31 +51.91% 

Credit Investor Angst:

• North American Investment Grade CDS Index 64.19 -.05%

• European Financial Sector CDS Index 78.11 -.07%

• Western Europe Sovereign Debt CDS Index 34.0 -.31%
• Asia Pacific Sovereign Debt CDS Index 88.38 +1.03%

• Emerging Market CDS Index 281.81 +.28%

• China Blended Corporate Spread Index 351.30 -.58%
• 2-Year Swap Spread 14.0 +1.5 basis points

• TED Spread 20.75 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -3.75 -.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .02% unch.

• Yield Curve 219.0 +3.0 basis points

• China Import Iron Ore Spot $105.90/Metric Tonne -.09%

• Citi US Economic Surprise Index -12.60 +6.3 points

• Citi Emerging Markets Economic Surprise Index -29.20 -2.6 points

• 10-Year TIPS Spread 2.18 -1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating -75 open in Japan

• DAX Futures: Indicating +14 open in Germany

Portfolio: 

• Higher: On gains in my biotech/tech/medical sector longs and emerging markets shorts

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added them back

• Market Exposure: 50% Net Long