Stocks Rising into Final Hour on Less Eurozone Debt Angst, Lower Long-Term Rates, Yen Weakness, Homebuilding/Hospital Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Around Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 15.01 -.92%

• Euro/Yen Carry Return Index 141.06 -.38%

• Emerging Markets Currency Volatility(VXY) 10.54 +.67%

• S&P 500 Implied Correlation 64.93 -2.78%

• ISE Sentiment Index 106.0 +47.22%

• Total Put/Call .91 -10.78%

• NYSE Arms 1.15 +18.99% 

Credit Investor Angst:

• North American Investment Grade CDS Index 65.64 +.12%

• America Energy Sector High-Yield CDS Index 1,070.0 -.70%

• European Financial Sector CDS Index 74.94 -.44%

• Western Europe Sovereign Debt CDS Index 23.77 -4.80%

• Asia Pacific Sovereign Debt CDS Index 60.81 +1.53%

• Emerging Market CDS Index 298.34 +.48%
  

• iBoxx Offshore RMB China Corporates High Yield Index 118.03 -.10%

• 2-Year Swap Spread 26.75 +1.0 basis point

• TED Spread 26.50 -1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -22.0 -1.0 basis point

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 156.0 -4.0 basis points

• China Import Iron Ore Spot $60.36/Metric Tonne -.87%

• Citi US Economic Surprise Index -64.70 +2.6 points

• Citi Eurozone Economic Surprise Index 17.1 -1.9 points

• Citi Emerging Markets Economic Surprise Index -13.9 +4.1 points

• 10-Year TIPS Spread 1.89 -2.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating +101 open in Japan

• DAX Futures: Indicating +10 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 50% Net Long