Stocks Rising into Final Hour on Less Eurozone Debt Angst, Financial Sector Optimism, Short-Covering, Investor Performance Angst

Broad Market Tone:

• Advance/Decline Line: Higher
  
• Sector Performance: Most Rising
  
• Volume: Below Average
  
• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• VIX 17.47 -5.21%
  
• ISE Sentiment Index 120.0 -2.44%
  
• Total Put/Call .94 -10.48%
  
• NYSE Arms .92 -27.09%
  

Credit Investor Angst:

• North American Investment Grade CDS Index 92.99 -.69%
  
• European Financial Sector CDS Index 161.10 -3.69%
  
• Western Europe Sovereign Debt CDS Index 340.41 -2.14%
  
• Emerging Market CDS Index 242.46 -3.36%
  
• 2-Year Swap Spread 26.25 +.25 bp
  
• TED Spread 41.0 +.25 bp
  
• 3-Month EUR/USD Cross-Currency Basis Swap -72.25 -5.25 bps
  

Economic Gauges:

• 3-Month T-Bill Yield .07% -1 bp
  
• Yield Curve 173.0 +4 bps
  
• China Import Iron Ore Spot $143.20/Metric Tonne +.14%
  
• Citi US Economic Surprise Index 45.10 -4.8 points
  
• 10-Year TIPS Spread 2.28 unch.
  

Overseas Futures:

• Nikkei Futures: Indicating +69 open in Japan
• DAX Futures: Indicating +2 open in Germany

Portfolio:

• Higher: On gains in my Retail, Biotech and Tech sector longs
  
• Disclosed Trades: Added to my (IWM)/(QQQ) hedges, then covered some of them
  
• Market Exposure: 75% Net Long