Stocks Surging into Final Hour on Debt Ceiling Hopes, Diminishing Global Growth Fears, Short-Covering, Healthcare/Homebuilding Sector Strength

Broad Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• VIX 13.48 +.45%

• ISE Sentiment Index 159.0 +80.68%

• Total Put/Call .78 -10.34%

• NYSE Arms 1.45 +22.89%

Credit Investor Angst:

• North American Investment Grade CDS Index 87.20 -1.72%

• European Financial Sector CDS Index 132.55 -.22%

• Western Europe Sovereign Debt CDS Index 99.64 -.19%

• Emerging Market CDS Index 211.58 -1.28%

• 2-Year Swap Spread 14.75 +2.25 bps

• TED Spread 22.5 -.25 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -16.0 +1.75 bps

Economic Gauges:

• 3-Month T-Bill Yield .08% unch.

• Yield Curve 161.0 +4 bps

• China Import Iron Ore Spot $145.40/Metric Tonne unch.

• Citi US Economic Surprise Index 5.20 +1.9 points

• 10-Year TIPS Spread 2.53 +3 bps

Overseas Futures:

• Nikkei Futures: Indicating +310 open in Japan

• DAX Futures: Indicating -1 open in Germany

Portfolio:

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added them back

• Market Exposure: 50% Net Long