Stocks Reversing Higher into Afternoon on Dovish Fed Commentary, Euro/Oil Bounce, Less US High-Yield Debt Angst, Homebuilding/Energy Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: About Even
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 16.22 +3.58%

• Euro/Yen Carry Return Index 134.65 +.26%

• Emerging Markets Currency Volatility(VXY) 10.71 -.65%

• S&P 500 Implied Correlation 60.71 +2.29%

• ISE Sentiment Index 71.0 -20.22%

• Total Put/Call 1.08 +12.50%

• NYSE Arms .93 -15.84% 

Credit Investor Angst:

• North American Investment Grade CDS Index 64.34 -1.12%
• America Energy Sector High-Yield CDS Index 736.0 -5.59%

• European Financial Sector CDS Index 59.42 +4.52%

• Western Europe Sovereign Debt CDS Index 23.20 +6.71%
• Asia Pacific Sovereign Debt CDS Index 66.82 +1.55%

• Emerging Market CDS Index 421.46 +.19%

• iBoxx Offshore RMB China Corporates High Yield Index 113.99 +.05%
• 2-Year Swap Spread 25.50 -1.5 basis points

• TED Spread 22.50 -1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -20.5 -.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .03% -2.0 basis points

• Yield Curve 139.0 unch.

• China Import Iron Ore Spot $55.48/Metric Tonne -2.58%

• Citi US Economic Surprise Index -71.90 +.1 point
• Citi Eurozone Economic Surprise Index 40.50 -.3 point

• Citi Emerging Markets Economic Surprise Index .6 -1.7 points

• 10-Year TIPS Spread 1.73 +8.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating -20 open in Japan

• DAX Futures: Indicating +58 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long