Stocks Higher into Final Hour on Earnings Optimism, Less European/Emerging Markets Debt Agnst, Short-Covering, Gaming/Homebuilding 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) 12.04 -6.01%

• Euro/Yen Carry Return Index 142.65 -.35%

• Emerging Markets Currency Volatility(VXY) 5.86 -.51%

• S&P 500 Implied Correlation 51.75 -.71%

• ISE Sentiment Index 154.0 +63.8%

• Total Put/Call .91 +1.11%

• NYSE Arms 1.05 +16.26% 

Credit Investor Angst:

• North American Investment Grade CDS Index 58.54 -1.60%

• European Financial Sector CDS Index 67.48 -4.69%

• Western Europe Sovereign Debt CDS Index 34.87 -1.66%

• Asia Pacific Sovereign Debt CDS Index 71.45 -1.41%

• Emerging Market CDS Index 241.0 -1.50%

• China Blended Corporate Spread Index 306.45 +.10%

• 2-Year Swap Spread 20.0 unch.

• TED Spread 21.25 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -8.75 +1.25 basis points

Economic Gauges:

• 3-Month T-Bill Yield .02% unch.

• Yield Curve 199.0 +1.0 basis point

• China Import Iron Ore Spot $95.40/Metric Tonne -.62%

• Citi US Economic Surprise Index -23.40 -5.4 points

• Citi Emerging Markets Economic Surprise Index -4.30 +.5 point

• 10-Year TIPS Spread 2.22 unch.

Overseas Futures:

• Nikkei Futures: Indicating +43 open in Japan

• DAX Futures: Indicating -9 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 50% Net Long