Stocks Rising into Final Hour on Less Eurozone Debt Angst, Yen Weakness, Short-Covering, Transport/Biotech 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) 12.82 -11.89%

• Euro/Yen Carry Return Index 140.54 +.44%

• Emerging Markets Currency Volatility(VXY) 10.29 +1.78%

• S&P 500 Implied Correlation 64.91 -2.83%

• ISE Sentiment Index 110.0 +10.0%

• Total Put/Call .98 -5.77%

• NYSE Arms .63 -28.03% 

Credit Investor Angst:

• North American Investment Grade CDS Index 62.91 -.91%

• America Energy Sector High-Yield CDS Index 1,084.0 +.54%

• European Financial Sector CDS Index 70.42 -.34%

• Western Europe Sovereign Debt CDS Index 22.80 -3.82%

• Asia Pacific Sovereign Debt CDS Index 60.01 -1.16%

• Emerging Market CDS Index 298.62 +.50%
  

• iBoxx Offshore RMB China Corporates High Yield Index 117.86 n/a

• 2-Year Swap Spread 26.0 +.75 basis point

• TED Spread 27.75 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -19.75 unch.

Economic Gauges:

• 3-Month T-Bill Yield .00% unch.

• Yield Curve 151.0 +3.0 basis points

• China Import Iron Ore Spot $56.18/Metric Tonne n/a

• Citi US Economic Surprise Index -62.30 -.1 point

• Citi Eurozone Economic Surprise Index 10.80 -1.1 points

• Citi Emerging Markets Economic Surprise Index -16.0 -.4 point

• 10-Year TIPS Spread 1.95 +1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating +229 open in Japan

• DAX Futures: Indicating +33 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 50% Net Long