Stocks Rising into Final Hour on Central Bank Hopes, Less Eurozone/Emerging Markets Debt Angst, Short-Covering, Construction/Transport Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 11.06 -5.31%

• Euro/Yen Carry Return Index 146.05 +.01%

• Emerging Markets Currency Volatility(VXY) 6.56 -5.48%

• S&P 500 Implied Correlation 49.08 -4.27%

• ISE Sentiment Index 134.0 +42.55%

• Total Put/Call .92 +24.32%

• NYSE Arms 1.14 +7.54% 

Credit Investor Angst:

• North American Investment Grade CDS Index 57.14 -4.62%

• European Financial Sector CDS Index 59.91 -11.15%

• Western Europe Sovereign Debt CDS Index 31.50 -5.58%

• Asia Pacific Sovereign Debt CDS Index 76.46 -2.57%

• Emerging Market CDS Index 235.11 -5.32%

• China Blended Corporate Spread Index 315.24 -.58%

• 2-Year Swap Spread 14.25 -.25 basis point

• TED Spread 20.0 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -8.50 +3.0 basis points

Economic Gauges:

• 3-Month T-Bill Yield .03% unch.

• Yield Curve 219.0 -1.0 basis point

• China Import Iron Ore Spot $94.50/Metric Tonne +.21%

• Citi US Economic Surprise Index -12.90 +1.2 points

• Citi Emerging Markets Economic Surprise Index -16.50 +3.2 points

• 10-Year TIPS Spread 2.19 +1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating +103 open in Japan

• DAX Futures: Indicating +10 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long