Stocks Slightly Higher into Final Hour on Stable Long-Term Rates, Investor Performance Angst, Short-Covering, Defense/Metals & Mining Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Light

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 15.43 -.71%

• Euro/Yen Carry Return Index 147.75 -.33%

• Emerging Markets Currency Volatility(VXY) 9.08 -.55%

• S&P 500 Implied Correlation 52.39 +1.26%

• ISE Sentiment Index 138.0 -2.13%

• Total Put/Call .81 +15.71%

• NYSE Arms 1.21 +23.0% 

Credit Investor Angst:

• North American Investment Grade CDS Index 69.91 -.34%

• European Financial Sector CDS Index 97.43 -.27%

• Western Europe Sovereign Debt CDS Index 56.36 +.34%

• Emerging Market CDS Index 277.46 +.89%

• 2-Year Swap Spread 10.25 +.25 basis point

• TED Spread 18.25 +.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap 1.0 +.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .06% -1 basis point

• Yield Curve 254.0 -2.0 basis points

• China Import Iron Ore Spot $136.0/Metric Tonne -1.38%
  

• Citi US Economic Surprise Index 32.10 +.4 point

• Citi Emerging Markets Economic Surprise Index -15.0 -.1 point

• 10-Year TIPS Spread 2.16 +2 basis points

Overseas Futures:

• Nikkei Futures: Indicating +157 open in Japan

• DAX Futures: Indicating +20 open in Germany

Portfolio: 

• Slightly Lower: On losses in my biotech/tech sector longs and index hedges

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added them back

• Market Exposure: 25% Net Long