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

Broad Equity Market Tone:

• Advance/Decline Line: Slightly Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 16.53 unch.

• Euro/Yen Carry Return Index 142.88 -.06%

• Emerging Markets Currency Volatility(VXY) 7.91 +.13%

• S&P 500 Implied Correlation 66.88 +5.44%

• ISE Sentiment Index 95.0 -31.16%

• Total Put/Call .86 +4.88%

• NYSE Arms .79 -19.76% 

Credit Investor Angst:

• North American Investment Grade CDS Index 65.20 -1.17%

• European Financial Sector CDS Index 67.32 -1.08%

• Western Europe Sovereign Debt CDS Index 32.0 -.90%
• Asia Pacific Sovereign Debt CDS Index 67.85 -.15%

• Emerging Market CDS Index 255.34 -2.72%

• China Blended Corporate Spread Index 329.72 -1.52%
• 2-Year Swap Spread 26.25 +.75 basis point

• TED Spread 22.25 +1.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -7.75 +.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .00% unch.

• Yield Curve 189.0 unch.

• China Import Iron Ore Spot $80.48/Metric Tonne +.24%

• Citi US Economic Surprise Index 17.20 -2.0 points
• Citi Eurozone Economic Surprise Index -36.8 +2.1 points

• Citi Emerging Markets Economic Surprise Index -17.60 -.6 point

• 10-Year TIPS Spread 1.90 -1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating +144 open in Japan

• DAX Futures: Indicating +6 open in Germany

Portfolio: 

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added them back

• Market Exposure: 50% Net Long