Stocks Rising into Final Hour on Buyout Speculation, Central Bank Hopes, Short-Covering, Financial/Healthcare Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 12.66 +2.26%

• Euro/Yen Carry Return Index 141.71 -.76%

• Emerging Markets Currency Volatility(VXY) 9.38 -.32%

• S&P 500 Implied Correlation 64.86 +1.58%

• ISE Sentiment Index 148.0 +64.4%

• Total Put/Call 1.0 +20.48%

• NYSE Arms 1.13 +17.36% 

Credit Investor Angst:

• North American Investment Grade CDS Index 63.0 +.41%

• America Energy Sector High-Yield CDS Index 1,068.0 +1.12%

• European Financial Sector CDS Index 74.41 +1.77%

• Western Europe Sovereign Debt CDS Index 22.37 +2.73%

• Asia Pacific Sovereign Debt CDS Index 59.40 +.02%

• Emerging Market CDS Index 286.62 -1.15%
  

• iBoxx Offshore RMB China Corporates High Yield Index 119.19 +.24%

• 2-Year Swap Spread 26.0 -.25 basis point

• TED Spread 26.50 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -19.25 -.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 166.0 +6.0 basis points

• China Import Iron Ore Spot $60.65/Metric Tonne -1.08%

• Citi US Economic Surprise Index -72.4 -.8 point

• Citi Eurozone Economic Surprise Index .6 -1.3 points

• Citi Emerging Markets Economic Surprise Index -11.6 +2.4 points

• 10-Year TIPS Spread 1.88 +2.0 basis points

Overseas Futures:

• Nikkei 225 Futures: Indicating +55 open in Japan 
• China A50 Futures: Indicating -134 open in China

• DAX Futures: Indicating +34 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long