Stocks Slightly Higher into Final Hour on Buyout Speculation, Yen Weakness, Central Bank Hopes, Financial/Tech 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) 12.20 -3.56%

• Euro/Yen Carry Return Index 144.43 +.11%

• Emerging Markets Currency Volatility(VXY) 6.33 +4.11%

• S&P 500 Implied Correlation 51.25 -3.66%

• ISE Sentiment Index 119.0 +56.58%

• Total Put/Call .80 +15.94%

• NYSE Arms .84 -23.31% 

Credit Investor Angst:

• North American Investment Grade CDS Index 59.99 -.53%

• European Financial Sector CDS Index 62.44 +.26%

• Western Europe Sovereign Debt CDS Index 30.21 +3.65%
• Asia Pacific Sovereign Debt CDS Index 79.22 +2.09%

• Emerging Market CDS Index 256.44 +.99%

• China Blended Corporate Spread Index 312.41 +.56%
• 2-Year Swap Spread 14.75 -.25 basis point

• TED Spread 20.0 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -13.0 +2.0 basis points

Economic Gauges:

• 3-Month T-Bill Yield .03% unch.

• Yield Curve 217.0 +3.0 basis points

• China Import Iron Ore Spot $89.30/Metric Tonne +.34%

• Citi US Economic Surprise Index -11.60 +3.8 points

• Citi Emerging Markets Economic Surprise Index -9.80 -3.1 points

• 10-Year TIPS Spread 2.21 +3.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating +48 open in Japan

• DAX Futures: Indicating +13 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 50% Net Long