Stocks Higher into Final Hour on Euro Reversal, Short-Covering, Technical Buying, Financial/Transport Sector Strength

Broad Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• VIX 13.87 -4.74%

• ISE Sentiment Index 112.0 -19.4%

• Total Put/Call .86 +4.88%

• NYSE Arms .99 -13.35%

Credit Investor Angst:

• North American Investment Grade CDS Index 85.79 +.16%

• European Financial Sector CDS Index 125.71 +1.67%

• Western Europe Sovereign Debt CDS Index 101.51 -.59%

• Emerging Market CDS Index 193.86 +.89%

• 2-Year Swap Spread 13.5 +.75 bp

• TED Spread 24.0 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -19.0 +.5 bp

Economic Gauges:

• 3-Month T-Bill Yield .07% unch.

• Yield Curve 164.0 +1 bp

• China Import Iron Ore Spot $153.30/Metric Tonne +2.34%

• Citi US Economic Surprise Index 34.10 -.6 point

• 10-Year TIPS Spread 2.48 +1 bp

Overseas Futures:

• Nikkei Futures: Indicating +102 open in Japan

• DAX Futures: Indicating +10 open in Germany

Portfolio:

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

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

• Market Exposure: Moved to 75% Net Long