Stocks Higher into Final Hour on Less Eurozone/Emerging Markets Debt Angst, Yen Weakness, Earnings Optimism, Tech/Financial Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Slightly Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 12.73 -3.92%

• Euro/Yen Carry Return Index 134.51 +.20%

• Emerging Markets Currency Volatility(VXY) 9.90 -.90%

• S&P 500 Implied Correlation 67.76 +.48%

• ISE Sentiment Index 161.0 +45.05%

• Total Put/Call .91 +1.11%

• NYSE Arms .63 -61.45% 

Credit Investor Angst:

• North American Investment Grade CDS Index 61.54 -.97%

• America Energy Sector High-Yield CDS Index 1,062.0 -.21%

• European Financial Sector CDS Index 73.26 -2.77%

• Western Europe Sovereign Debt CDS Index 26.74 -.02%

• Asia Pacific Sovereign Debt CDS Index 60.09 +.69%

• Emerging Market CDS Index 297.39 -1.82%
  

• iBoxx Offshore RMB China Corporates High Yield Index 116.98 +.18%

• 2-Year Swap Spread 26.75 -.5 basis point

• TED Spread 25.50 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -20.75 +1.5 basis points

Economic Gauges:

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

• Yield Curve 143.0 +4.0 basis points

• China Import Iron Ore Spot $54.04/Metric Tonne +5.88%

• Citi US Economic Surprise Index -51.80 +1.3 points

• Citi Eurozone Economic Surprise Index 46.60 -1.2 points

• Citi Emerging Markets Economic Surprise Index -13.1 -.3 point

• 10-Year TIPS Spread 1.88 +1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating +128 open in Japan

• DAX Futures: Indicating +72 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long