Stocks Rising into Final Hour on Lower Long-Term Rates, Oil Bounce, Yen Weakness, Defense/Healthcare Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Slightly Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 15.08 -.79%

• Euro/Yen Carry Return Index 137.52 +.50%

• Emerging Markets Currency Volatility(VXY) 10.49 +1.29%

• S&P 500 Implied Correlation 59.90 -1.42%

• ISE Sentiment Index 65.0 +18.54%

• Total Put/Call 1.22 +28.42%

• NYSE Arms 1.09 +37.16% 

Credit Investor Angst:

• North American Investment Grade CDS Index 62.89 +1.50%
• America Energy Sector High-Yield CDS Index 692.0 +.26%

• European Financial Sector CDS Index 57.02 +4.68%

• Western Europe Sovereign Debt CDS Index 20.34 -.76%
• Asia Pacific Sovereign Debt CDS Index 65.22 +1.23%

• Emerging Market CDS Index 404.61 +3.67%

• iBoxx Offshore RMB China Corporates High Yield Index 113.86 -.27%
• 2-Year Swap Spread 27.0 +1.25 basis points

• TED Spread 26.0 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -23.5 +.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 150.0 -2.0 basis points

• China Import Iron Ore Spot $58.58/Metric Tonne -1.53%

• Citi US Economic Surprise Index -49.0 -1.5 points
• Citi Eurozone Economic Surprise Index 49.5 +.2 point

• Citi Emerging Markets Economic Surprise Index 12.20 +18.1 points

• 10-Year TIPS Spread 1.77 -7.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating +88 open in Japan

• DAX Futures: Indicating +9 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 50% Net Long