Stocks Rising into Final Hour on Plunging Eurozone Debt Angst, Buyout Speculation, Short-Covering, Financial/Biotech 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) 12.63 -9.53%

• Euro/Yen Carry Return Index 146.11 +.51%

• Emerging Markets Currency Volatility(VXY) 8.95 -.44%

• S&P 500 Implied Correlation 62.63 -1.21%

• ISE Sentiment Index 163.0 +94.05%

• Total Put/Call .89 -2.20%

• NYSE Arms .65 -63.76% 

Credit Investor Angst:

• North American Investment Grade CDS Index 65.05 -4.44%

• America Energy Sector High-Yield CDS Index 1,520.0 -2.22%

• European Financial Sector CDS Index 78.46 -12.69%

• Western Europe Sovereign Debt CDS Index 24.92 -13.70%

• Asia Pacific Sovereign Debt CDS Index 57.70 -5.75%

• Emerging Market CDS Index 303.33 -2.33%
  

• iBoxx Offshore RMB China Corporates High Yield Index 120.66 +.06%

• 2-Year Swap Spread 24.75 -.5 basis point

• TED Spread 27.5 -1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -18.25 +1.0 basis point

Economic Gauges:

• 3-Month T-Bill Yield .00% unch.

• Yield Curve 171.0 +6.0 basis points

• China Import Iron Ore Spot $60.02/Metric Tonne -2.18%

• Citi US Economic Surprise Index -38.0 -2.0 points

• Citi Eurozone Economic Surprise Index -6.60 -3.8 points

• Citi Emerging Markets Economic Surprise Index -16.30 +.6 point

• 10-Year TIPS Spread 1.93 +4.0 basis points

Overseas Futures:

• Nikkei 225 Futures: Indicating +172 open in Japan 
• China A50 Futures: Indicating n/a open in China

• DAX Futures: Indicating -3 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long