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

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Above Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 23.25 -5.64%

• Euro/Yen Carry Return Index 141.33 -.65%

• Emerging Markets Currency Volatility(VXY) 8.35 +.72%

• S&P 500 Implied Correlation 70.48 -2.36%

• ISE Sentiment Index 71.0 +31.48%

• Total Put/Call 1.0 -35.0%

• NYSE Arms .95 -33.23% 

Credit Investor Angst:

• North American Investment Grade CDS Index 72.85 +1.65%

• European Financial Sector CDS Index 68.18 -.70%

• Western Europe Sovereign Debt CDS Index 26.98 +1.79%
• Asia Pacific Sovereign Debt CDS Index 73.59 +.92%

• Emerging Market CDS Index 269.44 +.90%

• China Blended Corporate Spread Index 330.37 +.51%
• 2-Year Swap Spread 27.75 +1.0 basis point

• TED Spread 22.5 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -9.50 unch.

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 183.0 -2.0 basis points

• China Import Iron Ore Spot $83.82/Metric Tonne -.42%

• Citi US Economic Surprise Index 19.40 +.3 point

• Citi Emerging Markets Economic Surprise Index -25.30 -.5 point

• 10-Year TIPS Spread 1.92 -4 basis points

Overseas Futures:

• Nikkei Futures: Indicating +3 open in Japan

• DAX Futures: Indicating -11 open in Germany

Portfolio: 

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

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

• Market Exposure: 25% Net Long