Stocks Rebounding into Final Hour on Commodity Bounce, Short-Covering, Transports/Homebuilding Sector Strength

Broad Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Light

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• VIX 14.24 -17.64%

• ISE Sentiment Index 85.0 +16.44%

• Total Put/Call .87 -23.01%

• NYSE Arms .78 -60.32%

Credit Investor Angst:

• North American Investment Grade CDS Index 82.26 -3.62%

• European Financial Sector CDS Index 166.92 -2.40%

• Western Europe Sovereign Debt CDS Index 103.01 -.12%

• Emerging Market CDS Index 231.54 +1.97%

• 2-Year Swap Spread 14.0 -.75 bp

• TED Spread 22.0 -.25 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -16.50 +.75 bp

Economic Gauges:

• 3-Month T-Bill Yield .06% unch.

• Yield Curve 150.0 +4 basis points

• China Import Iron Ore Spot $139.40/Metric Tonne -1.06%

• Citi US Economic Surprise Index 4.10 -7.1 points

• 10-Year TIPS Spread 2.40 unch.

Overseas Futures:

• Nikkei Futures: Indicating +199 open in Japan

• DAX Futures: Indicating +29 open in Germany

Portfolio: 

• Slightly Higher: On gains in my biotech/tech/medical/retail sector longs
• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
• Market Exposure: Moved to 50% Net Long