Stocks Reversing Higher into Final Hour on Oil Bounce, Earnings Optimism, Yen Weakness, Homebuilding/Airline Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Around Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 19.34 -5.38%

• Euro/Yen Carry Return Index 139.80 +.89%

• Emerging Markets Currency Volatility(VXY) 10.32 +4.45%

• S&P 500 Implied Correlation 65.99 -5.17%

• ISE Sentiment Index 65.0 -26.97%

• Total Put/Call 1.16 +19.59%

• NYSE Arms 1.31 -62.28% 

Credit Investor Angst:

• North American Investment Grade CDS Index 68.09 -.34%
• America Energy Sector High-Yield CDS Index 752.0 +1.75%

• European Financial Sector CDS Index 64.32 +.40%

• Western Europe Sovereign Debt CDS Index 25.45 +3.24%
• Asia Pacific Sovereign Debt CDS Index 69.81 +.91%

• Emerging Market CDS Index 398.45 -.43%

• iBoxx Offshore RMB China Corporates High Yield Index 113.01 +.12%
• 2-Year Swap Spread 22.75 -2.5 basis points

• TED Spread 23.75 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -14.5 -2.0 basis points

Economic Gauges:

• 3-Month T-Bill Yield .01% -1.0 basis point

• Yield Curve 124.0 unch.

• China Import Iron Ore Spot $63.27/Metric Tonne +.29%

• Citi US Economic Surprise Index 1.1 +5.1 points
• Citi Eurozone Economic Surprise Index -2.30 -3.9 points

• Citi Emerging Markets Economic Surprise Index -6.40 +1.0 point

• 10-Year TIPS Spread 1.63 +2.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating +229 open in Japan

• DAX Futures: Indicating +48 open in Germany

Portfolio: 

• Higher: On gains in my tech/retail/biotech/medical sector longs and emerging markets shorts

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

• Market Exposure: Moved to 50% Net Long