Stocks Reversing Slightly Higher into Final Hour on Central Bank Hopes, Euro/Oil Bounce, Short-Covering, Commodity/Homebuilding Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 14.08 +1.0%

• Euro/Yen Carry Return Index 132.84 +.16%

• Emerging Markets Currency Volatility(VXY) 9.63 -3.31%

• S&P 500 Implied Correlation 65.63 +1.31%

• ISE Sentiment Index 102.0 -15.17%

• Total Put/Call 1.11 +24.72%

• NYSE Arms .80 -25.01% 

Credit Investor Angst:

• North American Investment Grade CDS Index 61.78 -.25%

• America Energy Sector High-Yield CDS Index 1,109.0 -.70%

• European Financial Sector CDS Index 65.36 +4.52%

• Western Europe Sovereign Debt CDS Index 22.90 +4.57%

• Asia Pacific Sovereign Debt CDS Index 58.70 -.17%

• Emerging Market CDS Index 296.43 -.61%
  

• iBoxx Offshore RMB China Corporates High Yield Index 116.09 +.32%

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

• TED Spread 25.75 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -22.75 -.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 139.0 -1.0 basis point

• China Import Iron Ore Spot $50.78/Metric Tonne +4.01%

• Citi US Economic Surprise Index -48.0 -2.4 points

• Citi Eurozone Economic Surprise Index 55.70 -.5 point

• Citi Emerging Markets Economic Surprise Index -6.6 -.4 point

• 10-Year TIPS Spread 1.81 unch.

Overseas Futures:

• Nikkei Futures: Indicating +15 open in Japan

• DAX Futures: Indicating +52 open in Germany

Portfolio: 

• Slightly Lower: On losses in my biotech/tech/retail/medical sector longs

• Disclosed Trades: None

• Market Exposure: 50% Net Long