Stocks Reversing Higher into Final Hour on Euro Strength, Technical Buying, Short-Covering, Homebuilding/Financial Sector Strength

Broad Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• VIX 17.29 -1.20%

• ISE Sentiment Index 97.0 +59.0%

• Total Put/Call 1.23 +4.24%

• NYSE Arms .81 -55.38%

Credit Investor Angst:

• North American Investment Grade CDS Index 84.20 -2.08%

• European Financial Sector CDS Index 164.60 +5.1%

• Western Europe Sovereign Debt CDS Index 84.50 +1.20%

• Emerging Market CDS Index 308.31 +3.10%

• 2-Year Swap Spread 17.25 +.25 bp

• TED Spread 22.75 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -12.75 +.5 bp

Economic Gauges:

• 3-Month T-Bill Yield .05% unch.

• Yield Curve 179.0 -1 bp

• China Import Iron Ore Spot $113.90/Metric Tonne -2.32%

• Citi US Economic Surprise Index -29.0 unch.

• 10-Year TIPS Spread 2.13 -3 bps

Overseas Futures:

• Nikkei Futures: Indicating -214 open in Japan

• DAX Futures: Indicating +38 open in Germany

Portfolio: 

• Slightly Higher: On gains in my biotech/medical/retail/tech sector longs and emerging markets shorts

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

• Market Exposure: Moved to 50% Net Long