Stocks Slightly Higher into Final Hour on Buyout Speculation, Diminishing Global Growth Fears, Short-Covering, Healthcare/Utility Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 12.59 -.79%

• Euro/Yen Carry Return Index 142.87 +.07%

• Emerging Markets Currency Volatility(VXY) 5.93 +.68%

• S&P 500 Implied Correlation 54.76 -1.76%

• ISE Sentiment Index 108.0 +22.73%

• Total Put/Call .93 -1.06%

• NYSE Arms 1.17 +15.44% 

Credit Investor Angst:

• North American Investment Grade CDS Index 59.22 -.59%

• European Financial Sector CDS Index 66.69 -1.19%

• Western Europe Sovereign Debt CDS Index 33.19 -1.72%

• Asia Pacific Sovereign Debt CDS Index 70.65 -.58%

• Emerging Market CDS Index 255.83 +4.40%

• China Blended Corporate Spread Index 302.25 +.52%

• 2-Year Swap Spread 20.75 +.5 basis point

• TED Spread 21.0 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -8.0 +.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .03% +1.0 basis point

• Yield Curve 198.0 -4.0 basis points

• China Import Iron Ore Spot $94.30/Metric Tonne +.75%

• Citi US Economic Surprise Index -20.70 +3.8 points

• Citi Emerging Markets Economic Surprise Index -.5 +.1 point

• 10-Year TIPS Spread 2.27 unch.

Overseas Futures:

• Nikkei Futures: Indicating +58 open in Japan

• DAX Futures: Indicating +25 open in Germany

Portfolio: 

• Slightly Higher: On gains in my retail/tech sector longs and index hedges

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

• Market Exposure: Moved to 50% Net Long