Stocks Surging into Final Hour on Diminished Global Growth Fears, Earnings Optimism, Yen Weakness, Tech/Transport Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Every Sector Rising
  

• Volume: Slightly Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 16.99 -4.92%

• Euro/Yen Carry Return Index 142.93 +1.01%

• Emerging Markets Currency Volatility(VXY) 7.97 -2.45%

• S&P 500 Implied Correlation 67.28 +4.02%

• ISE Sentiment Index 138.0 +84.0%

• Total Put/Call .78 -33.33%

• NYSE Arms 1.17 -30.45% 

Credit Investor Angst:

• North American Investment Grade CDS Index 66.21 -2.80%

• European Financial Sector CDS Index 68.45 -.45%

• Western Europe Sovereign Debt CDS Index 32.29 -.32%

• Asia Pacific Sovereign Debt CDS Index 68.56 +1.22%

• Emerging Market CDS Index 263.28 +.58%

• China Blended Corporate Spread Index 334.79 -.46%

• 2-Year Swap Spread 25.5 +.25 basis point

• TED Spread 21.5 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -8.25 +.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .00% -2.0 basis poins

• Yield Curve 189.0 +3.0 basis points

• China Import Iron Ore Spot $80.29/Metric Tonne -1.88%

• Citi US Economic Surprise Index 19.40 +.5 point

• Citi Eurozone Economic Surprise Index -38.9 +14.6 points

• Citi Emerging Markets Economic Surprise Index -17.0 +2.6 points

• 10-Year TIPS Spread 1.91 unch.

Overseas Futures:

• Nikkei Futures: Indicating +265 open in Japan

• DAX Futures: Indicating -20 open in Germany

Portfolio: 

• Slightly Higher: On gains in my tech/medical/retail/biotech sector longs and emerging markets shorts

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added some back

• Market Exposure: Moved to 50% Net Long