Stocks Rising into Final Hour on Buyout Speculation, Earnings Optimism, Yen Weakness, Tech/Energy Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 11.62 -3.81%

• Euro/Yen Carry Return Index 144.42 +.31%

• Emerging Markets Currency Volatility(VXY) 5.80 -.34%

• S&P 500 Implied Correlation 48.43 -3.87%

• ISE Sentiment Index 134.0 +22.94%

• Total Put/Call .92 +4.56%

• NYSE Arms .97 -8.0% 

Credit Investor Angst:

• North American Investment Grade CDS Index 56.92 -2.53%

• European Financial Sector CDS Index 70.1 -2.23%

• Western Europe Sovereign Debt CDS Index 36.98 +.26%

• Asia Pacific Sovereign Debt CDS Index 71.24 -1.0%

• Emerging Market CDS Index 227.26 +.76%

• China Blended Corporate Spread Index 304.46 +.35%

• 2-Year Swap Spread 17.0 +.25 basis point

• TED Spread 21.75 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -11.25 +.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .02% unch.

• Yield Curve 208.0 +1.0 basis point

• China Import Iron Ore Spot $97.90/Metric Tonne +1.03%

• Citi US Economic Surprise Index -15.90 -2.8 points

• Citi Emerging Markets Economic Surprise Index -4.40 unch.

• 10-Year TIPS Spread 2.25 -2.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating +56 open in Japan

• DAX Futures: Indicating +2 open in Germany

Portfolio: 

• Slightly Higher: On gains in my tech sector longs

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

• Market Exposure: Moved to 75% Net Long