Stocks Slightly Higher into Final Hour on Quarter-End Window Dressing/Rebalancing, Buyout Speculation, Short-Covering, Oil Service/Homebuilding Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Slightly Higher
  

• Sector Performance: Mixed
  

• Volume: Light

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 11.73 +.86%

• Euro/Yen Carry Return Index 144.43 -.07%

• Emerging Markets Currency Volatility(VXY) 5.87 -1.34%

• S&P 500 Implied Correlation 50.19 -.32%

• ISE Sentiment Index 133.0 +3.10%

• Total Put/Call .85 -7.61%

• NYSE Arms 1.39 +30.19% 

Credit Investor Angst:

• North American Investment Grade CDS Index 57.62 +1.46%

• European Financial Sector CDS Index 65.59 +3.87%

• Western Europe Sovereign Debt CDS Index 29.05 +2.43%

• Asia Pacific Sovereign Debt CDS Index 73.56 -.29%

• Emerging Market CDS Index 235.81 +2.04%

• China Blended Corporate Spread Index 312.94 +.98%

• 2-Year Swap Spread 12.75 +.25 basis point

• TED Spread 21.50 +.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -9.75 unch.

Economic Gauges:

• 3-Month T-Bill Yield .02% -1.0 basis point

• Yield Curve 207.0 +1.0 basis  point

• China Import Iron Ore Spot $94.90/Metric Tonne -.42%

• Citi US Economic Surprise Index -23.70 -.6 point

• Citi Emerging Markets Economic Surprise Index -6.10 -2.8 points

• 10-Year TIPS Spread 2.25 -1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating +20 open in Japan

• DAX Futures: Indicating +10 open in Germany

Portfolio: 

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

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

• Market Exposure: 75% Net Long