Stocks Falling into Final Hour on Rising Global Growth Fears, Rising Eurozone Debt Angst, Increasing Mid-East Unrest, Tech/Homebuilding Sector Weakness

Broad Market Tone:

• Advance/Decline Line: Substantially Lower
• Sector Performance: Almost Every Sector Declining
• Volume: Below Average
• Market Leading Stocks: Underperforming

Equity Investor Angst:

• VIX 16.16 +6.95%
• ISE Sentiment Index 76.0 -32.14%
• Total Put/Call 1.05 +25.0%
• NYSE Arms .81 -23.08%

Credit Investor Angst:

• North American Investment Grade CDS Index 97.73 bps +2.62%
• European Financial Sector CDS Index 185.50 bps +1.64%
• Western Europe Sovereign Debt CDS Index 140.79 bps +1.08%
• Emerging Market CDS Index 224.71 bps +4.77%
• 2-Year Swap Spread 12.0 -2.25 basis points
• TED Spread 25.5 unch.
• 3-Month EUR/USD Cross-Currency Basis Swap -24.25 -.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .10% unch.
• Yield Curve 145.0 -3 basis points
• China Import Iron Ore Spot $117.20/Metric Tonne +6.16%
• Citi US Economic Surprise Index 42.60 -.8 point
• 10-Year TIPS Spread 2.55 -2 basis points

Overseas Futures:

• Nikkei Futures: Indicating -91 open in Japan
• DAX Futures: Indicating -7 open in Germany

Portfolio:

• Slightly Higher: On gains in my index hedges and emerging markets shorts
• Disclosed Trades: None
• Market Exposure: 25% Net Long