Stocks Reversing Higher into Final Hour on Less Eurozone Debt Angst, Short-Covering, Homebuilding/Gaming Sector Strength

Broad Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• VIX 13.57 -2.51%

• ISE Sentiment Index 117.0 +50.0%

• Total Put/Call .94 -9.62%

• NYSE Arms .77 -21.55%

Credit Investor Angst:

• North American Investment Grade CDS Index 85.49 -1.64%

• European Financial Sector CDS Index 168.10 -4.2%

• Western Europe Sovereign Debt CDS Index 103.34 +.61%

• Emerging Market CDS Index 241.06 -4.6%

• 2-Year Swap Spread 14.75 -.25 bp

• TED Spread 21.75 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -17.0 +.5 bp

Economic Gauges:

• 3-Month T-Bill Yield .06% unch.

• Yield Curve 151.0 +4 bps

• China Import Iron Ore Spot $137.60/Metric Tonne +1.25%

• Citi US Economic Surprise Index 2.90 -1.1 points

• 10-Year TIPS Spread 2.46 -1 bp

Overseas Futures:

• Nikkei Futures: Indicating +318 open in Japan

• DAX Futures: Indicating +27 open in Germany

Portfolio: 

• Higher: On gains in my tech/medical/biotech/retail sector longs
• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my (EEM) short
• Market Exposure: Moved to 75% Net Long