Stocks Slightly Higher into Final Hour on Less European/Emerging Markets/US High-Yield Debt Angst, Earnings Optimism, Oil Gain, Biotech/REIT Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Around Even
  

• Sector Performance: Mixed
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 9.39 -.42%

• Euro/Yen Carry Return Index 135.98 +.03%

• Emerging Markets Currency Volatility(VXY) 7.51 -.40%

• S&P 500 Implied Correlation 27.82 +8.1%

• ISE Sentiment Index 62.0 -40.95%
  

• Total Put/Call .70 -12.5%

• NYSE Arms 1.13 +95.72%

Credit Investor Angst:

• North American Investment Grade CDS Index 56.21 +.08%
  

• America Energy Sector High-Yield CDS Index 431.0 -2.32%

• European Financial Sector CDS Index 50.14 -.37%

• Western Europe Sovereign Debt CDS Index 4.93 +16.71%

• Asia Pacific Sovereign Debt CDS Index 20.36 -1.62%

• Emerging Market CDS Index 192.11 -1.6%
  

• iBoxx Offshore RMB China Corporate High Yield Index 140.38 -.05%

• 2-Year Swap Spread 23.75 -.25 basis point

• TED Spread 19.25 +5.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -27.0 +2.0 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 73.94 +.53%
• 3-Month T-Bill Yield 1.12% -3.0 basis points
  

• Yield Curve 93.0 -1.0 basis point

• China Import Iron Ore Spot $70.43/Metric Tonne +1.37%

• Citi US Economic Surprise Index -44.40 +1.1 points

• Citi Eurozone Economic Surprise Index 13.60 +.7 point

• Citi Emerging Markets Economic Surprise Index 15.60 +.5 basis point

• 10-Year TIPS Spread 1.80 -1.0 basis points
  
• 19.7% chance of Fed rate hike at Nov. 1 meeting, 48.6% chance at Dec. 13 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -20 open in Japan 
• China A50 Futures: Indicating +8 open in China

• DAX Futures: Indicating -39 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 100% Net Long