Stocks Rising into Final Hour on Earnings Optimism, Buyout Speculation, Short-Covering, Biotech/Gaming Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Gaining
  

• Volume: Slightly Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 12.92 -2.49%

• Euro/Yen Carry Return Index 147.80 +.11%

• Emerging Markets Currency Volatility(VXY) 8.40 +1.20%

• S&P 500 Implied Correlation 56.40 -1.23%

• ISE Sentiment Index 119.09 -23.72%

• Total Put/Call .65 -12.1% 

• NYSE Arms .95 -10.33% 

Credit Investor Angst:

• North American Investment Grade CDS Index 65.24 -2.31%

• European Financial Sector CDS Index 78.37 -1.98%

• Western Europe Sovereign Debt CDS Index 35.0 -.30%

• Asia Pacific Sovereign Debt CDS Index 86.97 -.46%

• Emerging Market CDS Index 275.31 +.94%

• China Blended Corporate Spread Index 349.71 -.42%

• 2-Year Swap Spread 13.75 -.75 basis point

• TED Spread 20.75 +.75 basis point

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

Economic Gauges:

• 3-Month T-Bill Yield .02% -1.0 basis point

• Yield Curve 231.0 -2.0 basis point

• China Import Iron Ore Spot $113.56/Metric Tonne -.71%

• Citi US Economic Surprise Index -22.90 +.7 point

• Citi Emerging Markets Economic Surprise Index -25.40 -.6 point

• 10-Year TIPS Spread 2.21 unch.

Overseas Futures:

• Nikkei Futures: Indicating +101 open in Japan

• DAX Futures: Indicating +19 open in Germany

Portfolio: 

• Higher: On gains in my tech/medical/biotech/retail sector longs and emerging markets shorts

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my (EEM) short

• Market Exposure: Moved to 50% Net Long