Stocks Surging into Final Hour on US Debt Ceiling/Shutdown Deal, Lower Long-Term Rates, Short-Covering, Biotech/Homebuilding Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 15.51 -18.81%

• Euro/Yen Carry Return Index 139.29 +.57%

• Emerging Markets Currency Volatility(VXY) 8.80 -1.35%

• S&P 500 Implied Correlation 43.34 -16.89%

• ISE Sentiment Index 81.0 unch.

• Total Put/Call .96 -4.0%

• NYSE Arms .64 -29.94% 

Credit Investor Angst:

• North American Investment Grade CDS Index 73.85 -4.21%

• European Financial Sector CDS Index 120.35 -.30%

• Western Europe Sovereign Debt CDS Index 70.0 -4.1%

• Emerging Market CDS Index 262.66 -2.0%

• 2-Year Swap Spread 13.50 +.75 basis point

• TED Spread 15.0 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -7.50 +.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .10% unch.

• Yield Curve 234.0 -3 basis points

• China Import Iron Ore Spot $133.70/Metric Tonne +.07%

• Citi US Economic Surprise Index 26.80 -4.1 points

• Citi Emerging Markets Economic Surprise Index -7.20 +1.6 points

• 10-Year TIPS Spread 2.19 -2 basis points

Overseas Futures:

• Nikkei Futures: Indicating +213 open in Japan

• DAX Futures: Indicating -7 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, added to my tech/biotech sector longs

• Market Exposure: Moved to 75% Net Long