Stocks Higher into Final Hour on Central Bank Hopes, Buyout Speculation, Short-Covering, Biotech/Financial Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Slightly Higher
  

• Sector Performance: Mixed
  

• Volume: Light

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 11.55 +.70%

• Euro/Yen Carry Return Index 143.24 -.33%

• Emerging Markets Currency Volatility(VXY) 6.68 +.91%

• S&P 500 Implied Correlation 48.31 +7.71%

• ISE Sentiment Index 95.0 -18.80%

• Total Put/Call .89 -4.30%

• NYSE Arms .65 -45.16% 

Credit Investor Angst:

• North American Investment Grade CDS Index 56.19 -3.09%

• European Financial Sector CDS Index 63.41 +.78%

• Western Europe Sovereign Debt CDS Index 31.17 +.26%

• Asia Pacific Sovereign Debt CDS Index 68.07 +.47%

• Emerging Market CDS Index 2277.93 -.95%

• China Blended Corporate Spread Index 310.35 -.42%

• 2-Year Swap Spread 22.25 -.25 basis point

• TED Spread 22.25 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -13.75 -1.25 basis points

Economic Gauges:

• 3-Month T-Bill Yield .02% unch.

• Yield Curve 189.0 -2.0 basis points

• China Import Iron Ore Spot $89.20/Metric Tonne -1.0%

• Citi US Economic Surprise Index 5.20 +.7 point

• Citi Emerging Markets Economic Surprise Index -14.20 +.6 point

• 10-Year TIPS Spread 2.15 unch.

Overseas Futures:

• Nikkei Futures: Indicating -33 open in Japan

• DAX Futures: Indicating -25 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 50% Net Long