Stocks Reversing Slightly Higher into Final Hour on Less Emerging Markets Debt Angst, Short-Covering, Bargain-Hunting, Retail/Homebuilding Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Slightly Above Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 16.07 -3.82%

• Euro/Yen Carry Return Index 143.46 -.05%

• Emerging Markets Currency Volatility(VXY) 7.86 -2.36%

• S&P 500 Implied Correlation 56.27 -4.34%

• ISE Sentiment Index 73.0 +52.08%

• Total Put/Call 1.0 -23.66%

• NYSE Arms .81 -53.19% 

Credit Investor Angst:

• North American Investment Grade CDS Index 63.23 -2.49%

• European Financial Sector CDS Index 63.46 +1.13%

• Western Europe Sovereign Debt CDS Index 27.17 +1.27%
• Asia Pacific Sovereign Debt CDS Index 71.66 -.29%

• Emerging Market CDS Index 281.03 -1.78%

• China Blended Corporate Spread Index 319.67 +1.14%
• 2-Year Swap Spread 26.25 -.5 basis point

• TED Spread 22.50 +.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -9.75 +1.25 basis points

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 190.0 +2.0 basis points

• China Import Iron Ore Spot $77.50/Metric Tonne n/a

• Citi US Economic Surprise Index 11.40 -1.0 basis point

• Citi Emerging Markets Economic Surprise Index -19.40 -.2 point

• 10-Year TIPS Spread 1.96 unch.

Overseas Futures:

• Nikkei Futures: Indicating -76 open in Japan

• DAX Futures: Indicating +42 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 50% Net Long