Stocks Surging into Final Hour on Less Eurozone Debt Angst, Jobless Claims, Short-Covering, Homebuilding/Tech Sector Strength

Broad Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• VIX 13.62 -6.0%

• ISE Sentiment Index 100.0 +21.95%

• Total Put/Call .89 -12.75%

• NYSE Arms 1.02 -45.04%

Credit Investor Angst:

• North American Investment Grade CDS Index 74.22 -4.79%

• European Financial Sector CDS Index 139.09 -5.48%

• Western Europe Sovereign Debt CDS Index 93.57 -.81%

• Emerging Market CDS Index 228.85 -2.45%

• 2-Year Swap Spread 14.0 -.5 bp

• TED Spread 22.25 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -17.25 +.75 bp

Economic Gauges:

• 3-Month T-Bill Yield .05% unch.

• Yield Curve 143.0 unch.

• China Import Iron Ore Spot $129.40/Metric Tonne -3.5%

• Citi US Economic Surprise Index 4.20 +8.0 points

• 10-Year TIPS Spread 2.28 -2 basis points

Overseas Futures:

• Nikkei Futures: Indicating +216 open in Japan

• DAX Futures: Indicating +17 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 50% Net Long