Stocks Rising Slightly into Final Hour on Less Pessimistic Economic Data, Short-Covering, Falling Energy Prices, Transports/Housing Sector Strength

Broad Market Tone:

• Advance/Decline Line: Lower
• Sector Performance: Mixed
• Volume: Below Average
• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• VIX 15.53 -1.15%
• ISE Sentiment Index 115.0 -24.68%
• Total Put/Call .94 +30.56%
• NYSE Arms .91 -21.56%

Credit Investor Angst:

• North American Investment Grade CDS Index 96.55 bps -1.8%
• European Financial Sector CDS Index 187.23 bps -4.09%
• Western Europe Sovereign Debt CDS Index 144.17 bps -.80%
• Emerging Market CDS Index 216.31 bps -.85%
• 2-Year Swap Spread 13.50 -.75 basis point
• TED Spread 26.5 -.25 basis point
• 3-Month EUR/USD Cross-Currency Basis Swap -26.0 +.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .09% unch.
• Yield Curve 138.0 unch.
• China Import Iron Ore Spot $104.20/Metric Tonne unch.
• Citi US Economic Surprise Index 17.40 +6.5 points
• 10-Year TIPS Spread 2.47 -1 basis point

Overseas Futures:

• Nikkei Futures: Indicating +43 open in Japan
• DAX Futures: Indicating -10 open in Germany

Portfolio:

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