Stocks Higher into Final Hour on Central Bank Hopes, Less European/Emerging Markets Debt Angst, Short-Covering, Commodity/Gaming Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 13.53 -.37%

• Euro/Yen Carry Return Index 152.33 -1.63%

• Emerging Markets Currency Volatility(VXY) 7.77 -3.24%

• S&P 500 Implied Correlation 33.12 -.12%

• ISE Sentiment Index 75.0 -31.19%

• Total Put/Call .75 -21.87%

• NYSE Arms .54 -44.01% 

Credit Investor Angst:

• North American Investment Grade CDS Index 63.85 -3.8%

• European Financial Sector CDS Index 64.33 -4.65%

• Western Europe Sovereign Debt CDS Index 30.70 -2.62%
• Asia Pacific Sovereign Debt CDS Index 63.89 -2.84%

• Emerging Market CDS Index 266.92 -3.21%

• China Blended Corporate Spread Index 327.17 +.96%
• 2-Year Swap Spread 21.75 unch.

• TED Spread 23.25 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -9.75 +.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .00% unch.

• Yield Curve 181.0 -2.0 basis points

• China Import Iron Ore Spot $70.31/Metric Tonne -.93%

• Citi US Economic Surprise Index 19.90 -1.5 points
• Citi Eurozone Economic Surprise Index -36.0 +1.0 point

• Citi Emerging Markets Economic Surprise Index -1.0 unch.

• 10-Year TIPS Spread 1.88 +2.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating +76 open in Japan

• DAX Futures: Indicating -25 open in Germany

Portfolio: 

• Slightly Lower: On losses in my tech sector longs and emerging markets shorts

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

• Market Exposure: 50% Net Long