Stocks Slightly Lower into Final Hour on Rising US Debt Ceiling Worries, Eurozone Debt Angst, Profit-Taking, Metals&Mining/Biotech/Defense Sector Weakness

Today's Market Take:

Broad Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• VIX 13.35 -1.48%

• ISE Sentiment Index 89.0 unch.

• Total Put/Call .86 -18.1%

• NYSE Arms 1.07 +54.50%

Credit Investor Angst:

• North American Investment Grade CDS Index 88.43 -.21%

• European Financial Sector CDS Index 132.85 -1.11%

• Western Europe Sovereign Debt CDS Index 99.83 -.17%

• Emerging Market CDS Index 213.48 +.14%

• 2-Year Swap Spread 12.5 -.25 bp

• TED Spread 22.75 +.5 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -17.75 unch.

Economic Gauges:

• 3-Month T-Bill Yield .08% unch.

• Yield Curve 157.0 -2 bps

• China Import Iron Ore Spot $145.40/Metric Tonne -4.91%

• Citi US Economic Surprise Index 3.30 -4.6 points

• 10-Year TIPS Spread 2.50 -3 bps

Overseas Futures:

• Nikkei Futures: Indicating +70 open in Japan

• DAX Futures: Indicating -5 open in Germany

Portfolio:

• Higher: On gains in my tech/retail sector longs and emerging markets shorts

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added them back

• Market Exposure: 50% Net Long