Stocks Surging into Final Hour on Lower Long-Term Rates, Yen Weakness, Short-Covering, Biotech/Pharma Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Slightly Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 15.24 -11.55%

• Euro/Yen Carry Return Index 145.42 +.44%

• Emerging Markets Currency Volatility(VXY) 9.36 -1.27%

• S&P 500 Implied Correlation 52.93 -4.23%

• ISE Sentiment Index 133.0 +44.57%

• Total Put/Call .82 -6.83%

• NYSE Arms .81 +24.83% 

Credit Investor Angst:

• North American Investment Grade CDS Index 67.78 -2.73%

• European Financial Sector CDS Index 93.80 -1.52%

• Western Europe Sovereign Debt CDS Index 53.0 -2.41%

• Asia Pacific Sovereign Debt CDS Index 111.04 -.72%

• Emerging Market CDS Index 325.44 -.18%

• China Blended Corporate Spread Index 361.89 -.77%

• 2-Year Swap Spread 12.25 -1.0 basis point

• TED Spread 15.75 -1.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -4.75 -.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .08% +1.0 basis point

• Yield Curve 237.0 -1.0 basis point

• China Import Iron Ore Spot $120.90/Metric Tonne -.08%

• Citi US Economic Surprise Index 23.60 -1.9 points

• Citi Emerging Markets Economic Surprise Index 10.80 +.9 point

• 10-Year TIPS Spread 2.17 +3.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating +235 open in Japan

• DAX Futures: Indicating +38 open in Germany

Portfolio: 

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

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

• Market Exposure: 75% Net Long