Stocks Rising into Final Hour on Less Eurozone/Emerging Markets Debt Angst, Short-Covering, Yen Weakness, Tech/Alt Energy Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 14.21 -9.89%

• Euro/Yen Carry Return Index 142.75 -.05%

• Emerging Markets Currency Volatility(VXY) 6.87 -2.0%

• S&P 500 Implied Correlation 54.55 -5.44%

• ISE Sentiment Index 104.0 +28.40%

• Total Put/Call .72 -32.71%

• NYSE Arms 1.08 +72.01% 

Credit Investor Angst:

• North American Investment Grade CDS Index 62.62 -3.09%

• European Financial Sector CDS Index 71.62 -6.70%

• Western Europe Sovereign Debt CDS Index 36.84 -5.54%
• Asia Pacific Sovereign Debt CDS Index 75.08 -2.11%

• Emerging Market CDS Index 285.30 -3.34%

• China Blended Corporate Spread Index 322.18 +.08%
• 2-Year Swap Spread 23.5 -.25 basis point

• TED Spread 21.25 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -12.5 -.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .03% +1.0 basis point

• Yield Curve 199.0 +1.0 basis point

• China Import Iron Ore Spot $95.30/Metric Tonne -.42%

• Citi US Economic Surprise Index 4.10 +1.1 points

• Citi Emerging Markets Economic Surprise Index 2.0 -.9 point

• 10-Year TIPS Spread 2.24 unch.

Overseas Futures:

• Nikkei Futures: Indicating +45 open in Japan

• DAX Futures: Indicating -10 open in Germany

Portfolio: 

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

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my (EEM) short

• Market Exposure: Moved to 50% Net Long