Stocks Rising into Final Hour on Central Bank Hopes, Earnings Optimism, Short-Covering, Tech/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 11.58 -3.34%

• Euro/Yen Carry Return Index 144.67 +.24%

• Emerging Markets Currency Volatility(VXY) 5.82 -1.36%

• S&P 500 Implied Correlation 48.88 -1.89%

• ISE Sentiment Index 123.0 +48.19%

• Total Put/Call .83 -7.78%

• NYSE Arms .67 -57.53% 

Credit Investor Angst:

• North American Investment Grade CDS Index 57.35 -.58%

• European Financial Sector CDS Index 69.24 +3.42%

• Western Europe Sovereign Debt CDS Index 35.40 +6.98%

• Asia Pacific Sovereign Debt CDS Index 70.75 -.16%

• Emerging Market CDS Index 221.13 -4.73%

• China Blended Corporate Spread Index 301.26 +1.21%

• 2-Year Swap Spread 14.50 +.5 basis point

• TED Spread 21.25 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -11.75 -.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .02% unch.

• Yield Curve 205.0 -1.0 basis point

• China Import Iron Ore Spot $96.60/Metric Tonne +.10%

• Citi US Economic Surprise Index -14.0 -.4 point

• Citi Emerging Markets Economic Surprise Index -4.60 +1.7 points

• 10-Year TIPS Spread 2.26 +2.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating +72 open in Japan

• DAX Futures: Indicating +9 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 50% Net Long