Stocks Surging into Final Hour on Central Bank Hopes, Buyout Speculation, Yen Weakness, Energy/Financial Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 14.4 -6.17%

• Euro/Yen Carry Return Index 135.82 +.21%

• Emerging Markets Currency Volatility(VXY) 10.56 -.58%

• S&P 500 Implied Correlation 64.06 -2.12%

• ISE Sentiment Index 94.0 +3.3%

• Total Put/Call .94 -11.32%

• NYSE Arms .53 -67.71% 

Credit Investor Angst:

• North American Investment Grade CDS Index 63.94 -.93%

• America Energy Sector High-Yield CDS Index 1,027.0 +2.01%

• European Financial Sector CDS Index 65.89 -.28%

• Western Europe Sovereign Debt CDS Index 21.60 -2.79%

• Asia Pacific Sovereign Debt CDS Index 60.70 -2.24%

• Emerging Market CDS Index 315.73 -.29%
  

• iBoxx Offshore RMB China Corporates High Yield Index 114.30 +.08%

• 2-Year Swap Spread 24.25 -.25 basis point

• TED Spread 24.0 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -23.5 +.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .02% -1.0 basis point

• Yield Curve 138.0 unch.

• China Import Iron Ore Spot $52.69/Metric Tonne -.85%

• Citi US Economic Surprise Index -60.8 +2.1 points

• Citi Eurozone Economic Surprise Index 64.90 +12.8 points

• Citi Emerging Markets Economic Surprise Index -.8 +.6 point

• 10-Year TIPS Spread 1.75 -3.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating +260 open in Japan

• DAX Futures: Indicating +42 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 50% Net Long