Stocks Higher into Final Hour on Yen Weakness, Short-Covering, Technical Buying, Defense/Transport Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Slightly Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 14.37 -7.94%

• Euro/Yen Carry Return Index 147.47 +.38%

• Emerging Markets Currency Volatility(VXY) 8.54 -.70%

• S&P 500 Implied Correlation 55.54 -1.14%

• ISE Sentiment Index 82.0 -10.87%

• Total Put/Call .90 -4.26% 

• NYSE Arms 1.07 +21.47% 

Credit Investor Angst:

• North American Investment Grade CDS Index 68.21 -1.07%

• European Financial Sector CDS Index 79.11 -5.07%

• Western Europe Sovereign Debt CDS Index 35.10 -2.77%
• Asia Pacific Sovereign Debt CDS Index 87.57 +.11%

• Emerging Market CDS Index 281.15 -1.90%

• China Blended Corporate Spread Index 359.31 -.06%
• 2-Year Swap Spread 15.0 +1.0 basis point

• TED Spread 20.25 +.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -2.0 -.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .03% unch.

• Yield Curve 227.0 +1.0 basis point

• China Import Iron Ore Spot $116.20/Metric Tonne -.77%

• Citi US Economic Surprise Index -30.40 +2.3 points

• Citi Emerging Markets Economic Surprise Index -22.90 -.8 point

• 10-Year TIPS Spread 2.17 +3.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating +73 open in Japan

• DAX Futures: Indicating +29 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long