Stocks Slightly Higher into Final Hour on Less Emerging Markets Debt Angst, Yen Weakness, Short-Covering, Biotech/Energy Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: About Even
  

• Sector Performance: Mixed
  

• Volume: Slightly Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 10.97 +3.3%

• Euro/Yen Carry Return Index 144.90 +.07%

• Emerging Markets Currency Volatility(VXY) 5.97 +1.19%

• S&P 500 Implied Correlation 48.47 +4.39%

• ISE Sentiment Index 88.0 -26.05%

• Total Put/Call .77 +14.93%

• NYSE Arms 1.12 +11.90% 

Credit Investor Angst:

• North American Investment Grade CDS Index 56.69 +.74%

• European Financial Sector CDS Index 59.34 +2.64%

• Western Europe Sovereign Debt CDS Index 29.29 -1.66%

• Asia Pacific Sovereign Debt CDS Index 74.65 -1.22%

• Emerging Market CDS Index 235.06 -4.50%

• China Blended Corporate Spread Index 311.27 +1.03%

• 2-Year Swap Spread 14.75 -.75 basis point

• TED Spread 22.0 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -8.75 -2.25 basis points

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 216.0 -1.0 basis point

• China Import Iron Ore Spot $90.70/Metric Tonne +1.54%

• Citi US Economic Surprise Index -10.20 unch.

• Citi Emerging Markets Economic Surprise Index -8.30 +.4 point

• 10-Year TIPS Spread 2.27 +3.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating +101 open in Japan

• DAX Futures: Indicating +4 open in Germany

Portfolio: 

• Slightly Higher: On gains in my biotech sector longs and emerging markets shorts

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 75% Net Long