Stocks Slightly Higher into Final Hour on Earnings Optimism, Less Emerging Markets Debt Angst, Short-Covering, Biotech/Homebuilding Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Slightly Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 11.74 -4.08%

• Euro/Yen Carry Return Index 142.70 +.06%

• Emerging Markets Currency Volatility(VXY) 5.78 -.86%

• S&P 500 Implied Correlation 52.98 +.74%

• ISE Sentiment Index 152.0 +3.4%

• Total Put/Call .72 -20.88%

• NYSE Arms 1.17 +24.0% 

Credit Investor Angst:

• North American Investment Grade CDS Index 58.43 -.64%

• European Financial Sector CDS Index 66.53 -1.16%

• Western Europe Sovereign Debt CDS Index 35.35 +1.38%

• Asia Pacific Sovereign Debt CDS Index 70.11 -2.01%

• Emerging Market CDS Index 239.15 -.84%

• China Blended Corporate Spread Index 303.80 -.87%

• 2-Year Swap Spread 19.50 -.5 basis point

• TED Spread 21.5 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -7.25 +1.5 basis points

Economic Gauges:

• 3-Month T-Bill Yield .02% unch.

• Yield Curve 199.0 unch.

• China Import Iron Ore Spot $94.30/Metric Tonne -1.15%

• Citi US Economic Surprise Index -23.30 +.1 point

• Citi Emerging Markets Economic Surprise Index -4.0 +.3 point

• 10-Year TIPS Spread 2.21 -1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating +48 open in Japan

• DAX Futures: Indicating +5 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long