Stocks Surging into Afternoon on Diminished Fed Taper Fears, Yen Weakness, Less Emerging Markets Debt Angst, Homebuilding/Financial Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 13.89 -7.89%

• Euro/Yen Carry Return Index 146.91 +1.28%

• Emerging Markets Currency Volatility(VXY) 9.20 unch.

• S&P 500 Implied Correlation 50.68 -3.89%

• ISE Sentiment Index 210.0 +61.54%

• Total Put/Call .90 +16.88%

• NYSE Arms .80 -26.70% 

Credit Investor Angst:

• North American Investment Grade CDS Index 69.30 -4.31%

• European Financial Sector CDS Index 100.84 -1.57%

• Western Europe Sovereign Debt CDS Index 64.0 +6.67%

• Emerging Market CDS Index 291.25 -2.68%

• 2-Year Swap Spread 8.75 -.25 basis point

• TED Spread 18.50 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap .75 +1.75 basis points

Economic Gauges:

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

• Yield Curve 256.0 -1 basis point

• China Import Iron Ore Spot $139.20/Metric Tonne -.22%
  

• Citi US Economic Surprise Index 32.50 +16.0 points

• Citi Emerging Markets Economic Surprise Index -13.70 +.1 point

• 10-Year TIPS Spread 2.12 -1 basis point

Overseas Futures:

• Nikkei Futures: Indicating +290 open in Japan

• DAX Futures: Indicating +5 open in Germany

Portfolio: 

• Slightly Higher: On gains in my tech/biotech/medical sector longs

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

• Market Exposure: Moved to 75% Net Long