Stocks Slightly Higher into Final Hour on Earnings Optimism, US Economic Data, Short-Covering, Retail/Homebuilding Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 13.75 -1.50%

• Euro/Yen Carry Return Index 154.60 -.02%

• Emerging Markets Currency Volatility(VXY) 8.11 +1.0%

• S&P 500 Implied Correlation 34.26 -9.30%

• ISE Sentiment Index 109.0 +19.78%

• Total Put/Call .92 -1.08%

• NYSE Arms .97 +5.70% 

Credit Investor Angst:

• North American Investment Grade CDS Index 66.35 -.43%

• European Financial Sector CDS Index 67.47 -.17%

• Western Europe Sovereign Debt CDS Index 31.53 -2.0%
• Asia Pacific Sovereign Debt CDS Index 66.27 +2.65%

• Emerging Market CDS Index 276.63 -.54%

• China Blended Corporate Spread Index 324.06 -.44%
• 2-Year Swap Spread 21.75 +.5 basis point

• TED Spread 23.25 +1.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -10.0 -.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .00% -1.0 basis point

• Yield Curve 183.0 unch.

• China Import Iron Ore Spot $70.97/Metric Tonne +1.10%

• Citi US Economic Surprise Index 21.40 +10.8 points
• Citi Eurozone Economic Surprise Index -37.0 -22.0 points

• Citi Emerging Markets Economic Surprise Index -1.0 +.1 point

• 10-Year TIPS Spread 1.86 +2.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating -50 open in Japan

• DAX Futures: Indicating -5 open in Germany

Portfolio: 

• Higher: On gains in my retail/tech sector longs and emerging markets shorts

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

• Market Exposure: Moved to 50% Net Long