Stocks Surging into Final Hour on Central Bank Hopes, Less Eurozone/Emerging Markets/US High-Yield Debt Angst, Short-Covering, Biotech/Energy Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Slightly Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 13.18 -12.89%

• Euro/Yen Carry Return Index 140.21 -.51%

• Emerging Markets Currency Volatility(VXY) 10.10 -3.72%

• S&P 500 Implied Correlation 64.32 -2.66%

• ISE Sentiment Index 92.0 -8.0%

• Total Put/Call .82 -11.83%

• NYSE Arms .84 -20.89% 

Credit Investor Angst:

• North American Investment Grade CDS Index 63.22 -4.04%

• America Energy Sector High-Yield CDS Index 1,075.0 +.63%

• European Financial Sector CDS Index 74.94 -4.18%

• Western Europe Sovereign Debt CDS Index 22.88 -3.74%

• Asia Pacific Sovereign Debt CDS Index 60.21 +.01%

• Emerging Market CDS Index 291.15 -2.59%
  

• iBoxx Offshore RMB China Corporates High Yield Index 118.0 -.02%

• 2-Year Swap Spread 26.5 +.25 basis point

• TED Spread 26.5 +.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -21.0 +1.0 basis point

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 157.0 +1.0 basis point

• China Import Iron Ore Spot $61.40/Metric Tonne +1.72%

• Citi US Economic Surprise Index -64.30 +.4 point

• Citi Eurozone Economic Surprise Index 14.2 -2.9 points

• Citi Emerging Markets Economic Surprise Index -17.1 -3.2 points

• 10-Year TIPS Spread 1.88 -1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating +336 open in Japan

• DAX Futures: Indicating +23 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long