Stocks Slightly Higher into Final Hour on Earnings Optimism, Short-Covering, Homebuilding/Healthcare Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 13.66 +2.94%

• Euro/Yen Carry Return Index 147.55 -.17%

• Emerging Markets Currency Volatility(VXY) 8.39 -.94%

• S&P 500 Implied Correlation 57.70 +1.96%

• ISE Sentiment Index 117.0 -12.69%

• Total Put/Call .77 -.23% 

• NYSE Arms 1.05 -.53% 

Credit Investor Angst:

• North American Investment Grade CDS Index 66.13 +.82%

• European Financial Sector CDS Index 79.79 +.98%

• Western Europe Sovereign Debt CDS Index 34.53 +.35%

• Asia Pacific Sovereign Debt CDS Index 87.98 +.58%

• Emerging Market CDS Index 285.61 +2.03%

• China Blended Corporate Spread Index 352.27 +1.02%

• 2-Year Swap Spread 10.5 +.75 basis point

• TED Spread 22.25 +1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -.25 +.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .00% -2.0 basis points

• Yield Curve 225.0 +1.0 basis point

• China Import Iron Ore Spot $113.20/Metric Tonne +.89%

• Citi US Economic Surprise Index -27.10 +.3 point

• Citi Emerging Markets Economic Surprise Index -26.70 +.1 point

• 10-Year TIPS Spread 2.22 unch.

Overseas Futures:

• Nikkei Futures: Indicating -24 open in Japan

• DAX Futures: Indicating -17 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long