Stocks Rising into Final Hour on Diminishing Global Growth Fears, Less Eurozone/Emerging Markets Debt Angst, Yen Weakness, Homebuilding/Technology Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Light

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 11.47 -4.66%

• Euro/Yen Carry Return Index 145.08 +.07%

• Emerging Markets Currency Volatility(VXY) 6.90 -.72%

• S&P 500 Implied Correlation 56.69 -.72%

• ISE Sentiment Index 159.0 +31.30%

• Total Put/Call .77 -10.47%

• NYSE Arms .88 -13.27% 

Credit Investor Angst:

• North American Investment Grade CDS Index 63.25 -.80%

• European Financial Sector CDS Index 75.42 -5.26%

• Western Europe Sovereign Debt CDS Index 37.35 -5.30%
• Asia Pacific Sovereign Debt CDS Index 82.64 -2.84%

• Emerging Market CDS Index 261.70 -1.54%

• China Blended Corporate Spread Index 349.79 -2.93%
• 2-Year Swap Spread 16.0 +.5 basis point

• TED Spread 20.0 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -7.25 -1.5 basis points

Economic Gauges:

• 3-Month T-Bill Yield .03% unch.

• Yield Curve 219.0 -2.0 basis points

• China Import Iron Ore Spot $97.50/Metric Tonne -1.32%

• Citi US Economic Surprise Index 1.40 +1.7 points

• Citi Emerging Markets Economic Surprise Index -19.10 -.4 point

• 10-Year TIPS Spread 2.22 unch.

Overseas Futures:

• Nikkei Futures: Indicating +130 open in Japan

• DAX Futures: Indicating +3 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 75% Net Long