Stocks Rising into Final Hour on Less Eurozone Debt Angst, Global Central Bank Stimulus Hopes, Short-Covering, Quarter-End Window Dressing

Broad Market Tone:

• Advance/Decline Line: Substantially Higher
• Sector Performance: Almost Every Sector Rising
• Volume: Below Average
• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• VIX 14.88 -11.48%
• ISE Sentiment Index 141.0 +13.71%
• Total Put/Call .82 -7.87%
• NYSE Arms .56 -49.02%

Credit Investor Angst:

• North American Investment Grade CDS Index 98.76 bps -3.38%
• European Financial Sector CDS Index 201.28 bps -3.82%
• Western Europe Sovereign Debt CDS Index 146.92 -1.42%
• Emerging Market CDS Index 224.95 -3.30%
• 2-Year Swap Spread 14.50 -1.5 basis points
• TED Spread 27.50 +1.5 basis points
• 3-Month EUR/USD Cross-Currency Basis Swap -26.5 +.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .09% -1 basis point
• Yield Curve 138.0 +2 basis points
• China Import Iron Ore Spot $104.20/Metric Tonne unch.
• Citi US Economic Surprise Index 8.8 -20.1 points
• 10-Year TIPS Spread 2.44 +1 basis point

Overseas Futures:

• Nikkei Futures: Indicating +33 open in Japan
• DAX Futures: Indicating +43 open in Germany

Portfolio:

• Higher: On gains in my Tech, Medical and Biotech sector longs
• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and covered some of my (EEM) short, then added some back
• Market Exposure: Moved to 50% Net Long