Stocks Higher into Final Hour on Stable Long-Term Rates, Less Emerging Markets Debt Angst, Short-Covering, Transport/Commodity Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Light

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 14.82 -7.03%

• Euro/Yen Carry Return Index 137.15 +.80%

• Emerging Markets Currency Volatility(VXY) 11.24 +.09%

• S&P 500 Implied Correlation 48.73 -9.50%

• ISE Sentiment Index 96.0 +21.62%

• Total Put/Call .80 -17.53%

• NYSE Arms 1.06 -36.83% 

Credit Investor Angst:

• North American Investment Grade CDS Index 81.47 -3.40%

• European Financial Sector CDS Index 144.06 -3.90%

• Western Europe Sovereign Debt CDS Index 85.50 +.80%

• Emerging Market CDS Index 334.31 -2.23%

• 2-Year Swap Spread 19.0 +.25 bp

• TED Spread 24.25 +1.0 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -9.75 -.5 bp

Economic Gauges:

• 3-Month T-Bill Yield .02% -1 bp

• Yield Curve 250.0 unch.

• China Import Iron Ore Spot $137.70/Metric Tonne -.07%

• Citi US Economic Surprise Index 34.30 -.4 point

• Citi Emerging Markets Economic Surprise Index -26.40 +5.9 points

• 10-Year TIPS Spread 2.12 -4 bps

Overseas Futures:

• Nikkei Futures: Indicating +220 open in Japan

• DAX Futures: Indicating +8 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