Stocks Higher into Final Hour on Euro Bounce, Earnings Optimism, Short-Covering, Telecom/Drug Sector Strength

Broad Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• VIX 13.67 -2.29%

• ISE Sentiment Index 96.0 +29.73%

• Total Put/Call .91 +3.41%

• NYSE Arms .96 -47.08%

Credit Investor Angst:

• North American Investment Grade CDS Index 90.87 -.46%

• European Financial Sector CDS Index 176.57 +4.1%

• Western Europe Sovereign Debt CDS Index 100.94 -.23%

• Emerging Market CDS Index 255.47 +1.14%

• 2-Year Swap Spread 17.75 +.25 bp

• TED Spread 21.75 -.5 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -20.5 -.25 bp

Economic Gauges:

• 3-Month T-Bill Yield .07% +1 bp

• Yield Curve 166.0 -1 bp

• China Import Iron Ore Spot $135.30/Metric Tonne +.82%

• Citi US Economic Surprise Index 29.10 +.3 point

• 10-Year TIPS Spread 2.54 +1 bp

Overseas Futures:

• Nikkei Futures: Indicating +127 open in Japan

• DAX Futures: Indicating +19 open in Germany

Portfolio: 

• Slightly Higher: On gains in my retail, medical, tech, biotech sector longs and emerging markets shorts
• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
• Market Exposure: Moved to 50% Net Long