Stocks Slightly Higher into Final Hour on Dovish Fed Commentary, Yen Weakness, Short-Covering, Healthcare/Gaming Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Mixed
  

• Volume: Heavy

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 25.56 -2.53%

• Euro/Yen Carry Return Index 141.81 -.10%

• Emerging Markets Currency Volatility(VXY) 8.66 unch.

• S&P 500 Implied Correlation 67.11 -8.25%

• ISE Sentiment Index 79.0 -18.56%

• Total Put/Call .98 -25.19%

• NYSE Arms 1.47 +8.74% 

Credit Investor Angst:

• North American Investment Grade CDS Index 73.83 -.21%

• European Financial Sector CDS Index 78.14 +4.39%

• Western Europe Sovereign Debt CDS Index 34.89 +12.87%
• Asia Pacific Sovereign Debt CDS Index 76.94 +4.14%

• Emerging Market CDS Index 279.18 -3.21%

• China Blended Corporate Spread Index 348.92 +2.34%
• 2-Year Swap Spread 27.25 unch.

• TED Spread 21.25 -1.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -10.75 -.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .03% +2.0 basis points

• Yield Curve 182.0 +4.0 basis points

• China Import Iron Ore Spot $80.32/Metric Tonne -2.70%

• Citi US Economic Surprise Index 18.30 +6.0 points
• Citi Eurozone Economic Surprise Index -54.3 +2.8 points

• Citi Emerging Markets Economic Surprise Index -22.60 +1.3 points

• 10-Year TIPS Spread 1.90 +5 basis points

Overseas Futures:

• Nikkei Futures: Indicating -48 open in Japan

• DAX Futures: Indicating -23 open in Germany

Portfolio: 

• Slightly Higher: On gains in my biotech sector longs and emerging markets shorts

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

• Market Exposure: Moved to 50% Net Long