Stocks Surging into Final Hour on Earnings Optimism, Central Bank Hopes, Less Eurozone/Emerging Markets Debt Angst, Commodity/Technology Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 15.07 -6.05%

• Euro/Yen Carry Return Index 143.75 +.55%

• Emerging Markets Currency Volatility(VXY) 7.25 -1.89%

• S&P 500 Implied Correlation 58.78 -6.40%

• ISE Sentiment Index 98.0 -22.22%

• Total Put/Call .98  +2.08%

• NYSE Arms .87 -39.86% 

Credit Investor Angst:

• North American Investment Grade CDS Index 64.57 -.65%

• European Financial Sector CDS Index 66.81 -.80%

• Western Europe Sovereign Debt CDS Index 32.60 -.31%
• Asia Pacific Sovereign Debt CDS Index 65.31 -2.57%

• Emerging Market CDS Index 250.33 -3.37%

• China Blended Corporate Spread Index 333.67 +.55%
• 2-Year Swap Spread 25.5 -.75 basis point

• TED Spread 22.25 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -7.75 -.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .02% +2.0 basis points

• Yield Curve 190.0 +2.0 basis points

• China Import Iron Ore Spot $79.22/Metric Tonne -.38%

• Citi US Economic Surprise Index 13.0 +1.0 point
• Citi Eurozone Economic Surprise Index -38.8 +2.5 points

• Citi Emerging Markets Economic Surprise Index -17.0 +.3 point

• 10-Year TIPS Spread 1.91 +1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating +110 open in Japan

• DAX Futures: Indicating +20 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long