Stocks Rising into Final Hour on Earnings, Yen Weakness, Short-Covering, Biotech/Gaming Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Around Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 16.24 -6.40%

• Euro/Yen Carry Return Index 145.19 -.39%

• Emerging Markets Currency Volatility(VXY) 10.11 -2.32%

• S&P 500 Implied Correlation 55.54 -2.70%

• ISE Sentiment Index 131.0 +32.32%

• Total Put/Call .79 -15.96%

• NYSE Arms 1.40 +21.10% 

Credit Investor Angst:

• North American Investment Grade CDS Index 71.07 -1.82%

• European Financial Sector CDS Index 99.94 -2.97%

• Western Europe Sovereign Debt CDS Index 56.0 +4.38%
• Asia Pacific Sovereign Debt CDS Index 115.20 -.45%

• Emerging Market CDS Index 337.49 +.17%

• 2-Year Swap Spread 12.50 +.5 basis point

• TED Spread 2.25 +2.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -5.25 -1.25 basis points

Economic Gauges:

• 3-Month T-Bill Yield .02% -2.0 basis points

• Yield Curve 235.0 +3.0 basis points

• China Import Iron Ore Spot $122.60/Metric Tonne unch.

• Citi US Economic Surprise Index 48.10 -2.6 points

• Citi Emerging Markets Economic Surprise Index 11.2 +.8 point

• 10-Year TIPS Spread 2.14 unch.

Overseas Futures:

• Nikkei Futures: Indicating +198 open in Japan

• DAX Futures: Indicating +34 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 50% Net Long