Stocks Slightly Higher into Final Hour on Buyout Speculation, Less Emerging Markets Debt Angst, Short-Covering, Biotech/Gaming 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) 14.32 -3.11%

• Euro/Yen Carry Return Index 135.35 -.38%

• Emerging Markets Currency Volatility(VXY) 9.63 -2.23%

• S&P 500 Implied Correlation 65.20 +.77%

• ISE Sentiment Index 127.0 +30.93%

• Total Put/Call .96 -3.03%

• NYSE Arms 1.07 -.27% 

Credit Investor Angst:

• North American Investment Grade CDS Index 60.53 +.49%

• America Energy Sector High-Yield CDS Index 1,104.0 +.78%

• European Financial Sector CDS Index 65.79 -1.06%

• Western Europe Sovereign Debt CDS Index 21.89 +.27%

• Asia Pacific Sovereign Debt CDS Index 57.89 +.04%

• Emerging Market CDS Index 293.38 -3.54%
  

• iBoxx Offshore RMB China Corporates High Yield Index 115.07 +.18%

• 2-Year Swap Spread 24.75 -.5 basis point

• TED Spread 25.75 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -21.5 +.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .02% unch.

• Yield Curve 137.0 unch.

• China Import Iron Ore Spot $48.05/Metric Tonne -.02%

• Citi US Economic Surprise Index -55.0 +.7 point

• Citi Eurozone Economic Surprise Index 57.60 -4.9 points

• Citi Emerging Markets Economic Surprise Index 5.2 +.6 point

• 10-Year TIPS Spread 1.84 -3.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating +103 open in Japan

• DAX Futures: Indicating +37 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 50% Net Long