Stocks Reversing Sharply Lower on Surging Eurozone Debt Angst, Global Growth Fears, Technical Selling, Financial/Homebuilding/Commodity Sector Weakness

Broad Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Slightly Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• VIX 16.83 +18.77%
  

• ISE Sentiment Index 100.0 -16.67%

• Total Put/Call 1.12 +21.74%

• NYSE Arms 1.65 +137.60%

Credit Investor Angst:

• North American Investment Grade CDS Index 89.20 +3.31%

• European Financial Sector CDS Index 150.49 +.31%

• Western Europe Sovereign Debt CDS Index 98.60 -1.95%

• Emerging Market CDS Index 235.95 +.60%

• 2-Year Swap Spread 14.25 -.25 bp

• TED Spread 17.0 +.25 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -19.75 unch.

Economic Gauges:

• 3-Month T-Bill Yield .12% unch.

• Yield Curve 164.0 -7 bps

• China Import Iron Ore Spot $151.90/Metric Tonne -1.11%

• Citi US Economic Surprise Index -5.0 -.2 point

• 10-Year TIPS Spread 2.52 -2 bps

Overseas Futures:

• Nikkei Futures: Indicating -287 open in Japan

• DAX Futures: Indicating -108 open in Germany

Portfolio: 

• Slightly Higher: On gains in my index hedges and emerging markets shorts
• Disclosed Trades: Added to my (IWM)/(QQQ) hedges
• Market Exposure: Moved to 25% Net Long