Stocks Rising Modestly into Final Hour on Less European/Emerging Markets Debt Angst, Seasonal Strength, Yen Weakness, Defense/Transport Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 15.81 -4.12%

• Euro/Yen Carry Return Index 153.22 +.39%

• Emerging Markets Currency Volatility(VXY) 11.04 +.36%

• S&P 500 Implied Correlation 63.97 -.34%

• ISE Sentiment Index 102.0 +50.0%

• Total Put/Call .79 -9.20%

• NYSE Arms 1.46 +57.25% 

Credit Investor Angst:

• North American Investment Grade CDS Index 64.76 +.44% 
• America Energy Sector High-Yield CDS Index 613.0 -2.20%

• European Financial Sector CDS Index 63.28 -4.10%

• Western Europe Sovereign Debt CDS Index 26.72 -9.33%
• Asia Pacific Sovereign Debt CDS Index 65.11 -4.05%

• Emerging Market CDS Index 317.99 -2.60%

• China Blended Corporate Spread Index 344.54 +.38%
• 2-Year Swap Spread 23.5 +.75 basis point

• TED Spread 22.75 +1.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -14.75 -.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .02% -1.0 basis point

• Yield Curve 150.0 -4.0 basis points

• China Import Iron Ore Spot $67.90/Metric Tonne -1.84%

• Citi US Economic Surprise Index 32.70 +1.2 points
• Citi Eurozone Economic Surprise Index 1.90 +2.7 points

• Citi Emerging Markets Economic Surprise Index -12.80 unch.

• 10-Year TIPS Spread 1.67 +4.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating +195 open in Japan

• DAX Futures: Indicating +39 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 50% Net Long