North American Investment Grade CDS Index 83.16 bps +.17%
European Financial Sector CDS Index 73.24 bps +1.0%
Western Europe Sovereign Debt CDS Index 69.83 bps +1.82%
Emerging Market CDS Index 230.23 bps -1.43%
2-Year Swap Spread 22.0 bps -1 basis point
TED Spread 11.0 bps unch.
Economic Gauges:
3-Month T-Bill Yield .14% unch.
Yield Curve 282.0 bps +1 basis point
Copper Days Demand 15.20 days -.34%
Citi US Economic Surprise Index +17.0 -6.4 points
10-Year TIPS Spread 2.23% unch.
Overseas Futures:
Nikkei Futures: Indicating +13 open in Japan
DAX Futures: Indicating +5 open in Germany
Portfolio:
Slightly Lower: On weakness in my Medical and Retail long positions
Disclosed Trades: None
Market Exposure: 100% Net Long
BOTTOM LINE: Today's overall market action is mildly bearish as stocks ignored some good news today and have reversed to session lows. On the positive side, (IYR) has traded well throughout the day, gaining +.33%. Transportation shares are strongly outpeforming, rising +1.2%. Weekly retail sales rose +3.1% this week, which is the best showing since the week of April 10th, 2007, which is a large positive. The US sovereign debt cds is dropping another -10.81% today to 33.0 basis points, which is also a large positive. On the negative side, Coal, Gold, HMO and Retail stocks are notably weak on the day. While this afternoon's weakness is disappointing, it isn't serious enough yet to suggest another trend reversal. However, gauges of investor angst are a bit lower than I would like to see today. One of my longs, (AAPL), is hitting another new all-time high today on volume. I still don't think it is too late for intermediate/long-term investors to purchase the shares around current levels. I expect US stocks to trade mixed-to-higher into the close from current levels on short-covering, technical buying and diminishing financial sector pessimism.
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