Stocks Falling into Afternoon on Rate Worries, Emerging Markets Concerns, Technical Selling, Homebuilder/Transport Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 12.65 +6.84%
• Euro/Yen Carry Return Index 135.44 -.29%
• Emerging Markets Currency Volatility(VXY) 9.27 -.54%
• S&P 500 Implied Correlation 47.94 +4.51%

• ISE Sentiment Index 123.0 +14.95%

• Total Put/Call .75 -10.71%

• NYSE Arms 1.13 +20.19% 

Credit Investor Angst:

• North American Investment Grade CDS Index 74.51 +2.37%

• European Financial Sector CDS Index 136.59 +1.71%

• Western Europe Sovereign Debt CDS Index 83.50 +.44%

• Emerging Market CDS Index 308.33 +2.51%

• 2-Year Swap Spread 17.5 -.25 bp

• TED Spread 22.50 -.5 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -8.25 +.5 bp

Economic Gauges:

• 3-Month T-Bill Yield .04% +1 bp

• Yield Curve 233.0 -1 bp

• China Import Iron Ore Spot $131.40/Metric Tonne +.92%

• Citi US Economic Surprise Index 36.70 +17.9 points
• Citi Emerging Markets Economic Surprise Index -27.80 +.2 point

• 10-Year TIPS Spread 2.26 +3 bps

Overseas Futures:

• Nikkei Futures: Indicating -201 open in Japan

• DAX Futures: Indicating -15 open in Germany

Portfolio: 

• Slightly Lower: On losses in my retail/biotech sector longs
• Disclosed Trades: Added to my (IWM)/(QQQ) hedges
• Market Exposure: Moved to 25% Net Long