Stocks Slightly Higher into Final Hour on Lower Long-Term Rates, Short-Covering, Homebuilding/Transport Sector Strength

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Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 13.88 -3.74%
• Euro/Yen Carry Return Index 136.23 +.18%
• Emerging Markets Currency Volatility(VXY) 9.80 -.10%
• S&P 500 Implied Correlation 53.46 -1.31%

• ISE Sentiment Index 131.0 +22.43%

• Total Put/Call .93 -3.12%

• NYSE Arms .89 -6.79% 

Credit Investor Angst:

• North American Investment Grade CDS Index 76.28 -2.05%

• European Financial Sector CDS Index 158.60 -.54%

• Western Europe Sovereign Debt CDS Index 96.88 -.42%

• Emerging Market CDS Index 287.40 -4.2%

• 2-Year Swap Spread 17.0 unch.

• TED Spread 24.0 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -10.0 +.25 bp

Economic Gauges:

• 3-Month T-Bill Yield .03% +1 bp

• Yield Curve 218.0 -3 bps

• China Import Iron Ore Spot $130.40/Metric Tonne +1.09%

• Citi US Economic Surprise Index -11.30 -6.0 points
• Citi Emerging Markets Economic Surprise Index -32.80 +3.2 points

• 10-Year TIPS Spread 2.12 unch.

Overseas Futures:

• Nikkei Futures: Indicating +130 open in Japan

• DAX Futures: Indicating -2 open in Germany

Portfolio: 

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