Stocks Higher into Final Hour on Earnings Optimism, Yen Weakness, Short-Covering, Utility/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Slightly Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 14.38 -5.08%

• Euro/Yen Carry Return Index 143.95 +.19%

• Emerging Markets Currency Volatility(VXY) 7.48 +1.08%

• S&P 500 Implied Correlation 55.25 -5.15%

• ISE Sentiment Index 101.0 +24.69%

• Total Put/Call .93 -9.71%

• NYSE Arms 1.13 +1.72% 

Credit Investor Angst:

• North American Investment Grade CDS Index 65.58 -.07%

• European Financial Sector CDS Index 69.51 +2.54%

• Western Europe Sovereign Debt CDS Index 33.27 +2.68%

• Asia Pacific Sovereign Debt CDS Index 65.57 +2.25%

• Emerging Market CDS Index 241.94 -1.98%

• China Blended Corporate Spread Index 327.97 -.85%

• 2-Year Swap Spread 21.25 -.25 basis point

• TED Spread 22.25 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -9.0 -.75 basis point

Economic Gauges:

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

• Yield Curve 183.0 unch.

• China Import Iron Ore Spot $79.82/Metric Tonne +.92%

• Citi US Economic Surprise Index 18.80 +6.3 points

• Citi Eurozone Economic Surprise Index -29.70 +7.6 points

• Citi Emerging Markets Economic Surprise Index -16.0 +.8 point

• 10-Year TIPS Spread 1.91 -1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating +185 open in Japan

• DAX Futures: Indicating +2 open in Germany

Portfolio: 

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my (EEM) short, then added them back

• Market Exposure: 50% Net Long