Stocks Higher into Final Hour on Less Emerging Markets Debt Angst, Euro Bounce, Short-Covering, Gaming/Homebuilding Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 14.59 -3.44%

• Euro/Yen Carry Return Index 136.22 +1.18%

• Emerging Markets Currency Volatility(VXY) 10.22 -1.06%

• S&P 500 Implied Correlation 64.36 -1.27%

• ISE Sentiment Index 70.0 -32.04%

• Total Put/Call 1.15 +3.60%

• NYSE Arms .52 -46.73% 

Credit Investor Angst:

• North American Investment Grade CDS Index 62.33 -1.40%

• America Energy Sector High-Yield CDS Index 1,093.0 +2.08%

• European Financial Sector CDS Index 68.33 +1.54%

• Western Europe Sovereign Debt CDS Index 22.56 +2.15%

• Asia Pacific Sovereign Debt CDS Index 59.58 -.35%

• Emerging Market CDS Index 311.33 -.92%
  

• iBoxx Offshore RMB China Corporates High Yield Index 114.58 +.02%

• 2-Year Swap Spread 26.25 +.75 basis point

• TED Spread 25.0 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -23.25 +1.0 basis point

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 137.0 +4.0 basis points

• China Import Iron Ore Spot $47.08/Metric Tonne -4.95%

• Citi US Economic Surprise Index -47.3 +15.2 points

• Citi Eurozone Economic Surprise Index 63.10 +.6 point

• Citi Emerging Markets Economic Surprise Index 4.9 +1.6 points

• 10-Year TIPS Spread 1.81 unch.

Overseas Futures:

• Nikkei Futures: Indicating +72 open in Japan

• DAX Futures: Indicating +12 open in Germany

Portfolio: 

• Slightly Higher: On gains in my medical/retail sector longs

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

• Market Exposure: 50% Net Long