Stocks Higher into Final Hour on Buyout Speculation, US Economic Data, Technical Buying, REIT/Transport 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) 13.69 -1.0%

• Euro/Yen Carry Return Index 142.47 -.05%

• Emerging Markets Currency Volatility(VXY50 0 +1.3%

• S&P 500 Implied Correlation 60.66 -1.80%

• ISE Sentiment Index 103.0 +10.75%

• Total Put/Call .85 -25.44%

• NYSE Arms .97 -9.89% 

Credit Investor Angst:

• North American Investment Grade CDS Index 63.47 -.44%

• America Energy Sector High-Yield CDS Index 1,119.0 +.31%

• European Financial Sector CDS Index 77.84 +2.33%

• Western Europe Sovereign Debt CDS Index 24.39 +4.32%

• Asia Pacific Sovereign Debt CDS Index 59.62 -.19%

• Emerging Market CDS Index 295.61 +1.94%
  

• iBoxx Offshore RMB China Corporates High Yield Index 119.99 -.08%

• 2-Year Swap Spread 24.0 -.5 basis point

• TED Spread 28.0 -.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -20.75 +.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .00% unch.

• Yield Curve 155.0 +6.0 basis points

• China Import Iron Ore Spot $61.85/Metric Tonne unch.

• Citi US Economic Surprise Index -52.50 +1.7 points

• Citi Eurozone Economic Surprise Index -13.90 unch.

• Citi Emerging Markets Economic Surprise Index -21.3 -.9 point

• 10-Year TIPS Spread 1.83 unch.

Overseas Futures:

• Nikkei 225 Futures: Indicating +70 open in Japan 
• China A50 Futures: Indicating -84 open in China

• DAX Futures: Indicating +39 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long