Stocks Surging into Final Hour on Central Bank Hopes, Less European Debt Angst, Yen Weakness, Financial/Transport Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Slightly Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 16.53 -12.31%

• Euro/Yen Carry Return Index 140.52 -1.79%

• Emerging Markets Currency Volatility(VXY) 10.58 -2.76%

• S&P 500 Implied Correlation 63.17 -3.08%

• ISE Sentiment Index 210.0 +176.32%

• Total Put/Call .93 -13.08%

• NYSE Arms .97 +52.75% 

Credit Investor Angst:

• North American Investment Grade CDS Index 67.96 -2.80%
• America Energy Sector High-Yield CDS Index 737.0 -.26%

• European Financial Sector CDS Index 59.98 -3.85%

• Western Europe Sovereign Debt CDS Index 24.87 -4.24%
• Asia Pacific Sovereign Debt CDS Index 70.08 -1.93%

• Emerging Market CDS Index 394.29 -.60%

• China Blended Corporate Spread Index n/a
• 2-Year Swap Spread 24.75 +.5 basis point

• TED Spread 23.75 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -12.5 +2.25 basis points

Economic Gauges:

• 3-Month T-Bill Yield .02% unch.

• Yield Curve 138.0 +2.0 basis points

• China Import Iron Ore Spot $66.79/Metric Tonne -1.5%

• Citi US Economic Surprise Index 4.0 -1.5 points
• Citi Eurozone Economic Surprise Index -3.6 -.2 point

• Citi Emerging Markets Economic Surprise Index -12.10 +.1 point

• 10-Year TIPS Spread 1.64 +3.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating +276 open in Japan

• DAX Futures: Indicating +81 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long