Stocks Slightly Higher into Final Hour on Lower Long-Term Rates, Less Emerging Markets Debt Angst, Short-Covering, Metals & Mining/Homebuilding Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: About Even
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 12.42 -3.65%

• Euro/Yen Carry Return Index 148.32 -.30%

• Emerging Markets Currency Volatility(VXY) 8.47 -4.83%

• S&P 500 Implied Correlation 49.23 -1.97%

• ISE Sentiment Index 97.0 -30.71%

• Total Put/Call .74 unch.

• NYSE Arms 1.24 +10.82% 

Credit Investor Angst:

• North American Investment Grade CDS Index 63.78 -2.11%

• European Financial Sector CDS Index 86.0 -.17%

• Western Europe Sovereign Debt CDS Index 50.0 unch.

• Emerging Market CDS Index 280.48 -.33%

• 2-Year Swap Spread 12.0 +.25 basis point

• TED Spread 20.50 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -1.75 -.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .04% unch.

• Yield Curve 249.0 -5 basis points

• China Import Iron Ore Spot $130.70/Metric Tonne -.23%

• Citi US Economic Surprise Index 65.50 +1.6 points

• Citi Emerging Markets Economic Surprise Index -.9 -5.6 points

• 10-Year TIPS Spread 2.27 -3 basis points

Overseas Futures:

• Nikkei Futures: Indicating -52 open in Japan

• DAX Futures: Indicating +27 open in Germany

Portfolio: 

• Slightly Lower: On losses in my index hedges and emerging markets shorts

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

• Market Exposure: 50% Net Long