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

Broad Equity Market Tone:

• Advance/Decline Line: About Even
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 14.25 -3.47%

• Euro/Yen Carry Return Index 137.69 +.18%

• Emerging Markets Currency Volatility(VXY) 10.73 -2.63%

• S&P 500 Implied Correlation 49.27 -1.26%

• ISE Sentiment Index 108.0 +17.39%

• Total Put/Call .78 -2.50%

• NYSE Arms .90 -4.84% 

Credit Investor Angst:

• North American Investment Grade CDS Index 79.12 -1.83%

• European Financial Sector CDS Index 140.57 -2.41%

• Western Europe Sovereign Debt CDS Index 85.50 unch.

• Emerging Market CDS Index 322.66 -1.67%

• 2-Year Swap Spread 19.50 +.5 bp

• TED Spread 24.25 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -9.5 +.25 bp

Economic Gauges:

• 3-Month T-Bill Yield .02% unch.

• Yield Curve 244.0 -6 bps

• China Import Iron Ore Spot $138.60/Metric Tonne +.65%

• Citi US Economic Surprise Index 28.50 -5.8 points

• Citi Emerging Markets Economic Surprise Index -24.60 +1.8 points

• 10-Year TIPS Spread 2.14 +2 bps

Overseas Futures:

• Nikkei Futures: Indicating +65 open in Japan

• DAX Futures: Indicating -1 open in Germany

Portfolio: 

• Slightly Lower: On losses in my biotech/retail sector longs and emerging markets shorts

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

• Market Exposure: Moved to 75% Net Long