Stocks Reversing Higher into Final Hour on Dovish Fed Commentary, Short-Covering, Homebuilding/Transport Sector Strength

Today's Market Take:

Broad Market Tone:

• Advance/Decline Line: Slightly Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• VIX 14.24 -7.29%
  

• ISE Sentiment Index 102.0 +22.89%

• Total Put/Call 1.14 -3.39%

• NYSE Arms .87 -22.31%

Credit Investor Angst:

• North American Investment Grade CDS Index 84.74 -1.89%

• European Financial Sector CDS Index 159.05 -2.79%

• Western Europe Sovereign Debt CDS Index 101.49 -1.30%

• Emerging Market CDS Index 242.12 -.74%

• 2-Year Swap Spread 14.0 +.25 bp

• TED Spread 19.75 +1.5 bps

• 3-Month EUR/USD Cross-Currency Basis Swap -20.0 +.25 bp

Economic Gauges:

• 3-Month T-Bill Yield .09% -1 bp

• Yield Curve 164.0 +2 bps

• China Import Iron Ore Spot $148.80/Metric Tonne -1.20%

• Citi US Economic Surprise Index 5.20 -1.5 points

• 10-Year TIPS Spread 2.55 +1 bp

Overseas Futures:

• Nikkei Futures: Indicating +103 open in Japan

• DAX Futures: Indicating +40 open in Germany

Portfolio: 

• Higher: On gains in my retail/biotech sector longs and emerging markets shorts
• Disclosed Trades: Added to my (IWM)/(QQQ) hedges, then covered some of them
• Market Exposure: 50% Net Long