Stocks Surging into Final Hour on Central Bank Hopes, Less Eurozone/Emerging Markets Debt Angst, Short-Covering, Financial/REIT Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Slightly Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 11.56 -4.30%

• Euro/Yen Carry Return Index 146.04 +.14%

• Emerging Markets Currency Volatility(VXY) 7.0 -3.45%

• S&P 500 Implied Correlation 49.73 -6.01%

• ISE Sentiment Index 100.0 +7.53%

• Total Put/Call .70 -5.41%

• NYSE Arms 1.13 +30.16% 

Credit Investor Angst:

• North American Investment Grade CDS Index 60.01 -3.31%

• European Financial Sector CDS Index 67.43 -5.69%

• Western Europe Sovereign Debt CDS Index 33.07 -4.53%
• Asia Pacific Sovereign Debt CDS Index 80.11 +.92%

• Emerging Market CDS Index 248.48 -2.78%

• China Blended Corporate Spread Index 317.09 -.54%
• 2-Year Swap Spread 14.50 +.75 basis point

• TED Spread 20.0 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -11.50 -1.5 basis points

Economic Gauges:

• 3-Month T-Bill Yield .03% unch.

• Yield Curve 220.0 -1.0 basis point

• China Import Iron Ore Spot $94.30/Metric Tonne -.32%

• Citi US Economic Surprise Index -14.10 -.4 point

• Citi Emerging Markets Economic Surprise Index -19.70 +1.9 points

• 10-Year TIPS Spread 2.18 +1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating +80 open in Japan

• DAX Futures: Indicating +18 open in Germany

Portfolio: 

• 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