Stocks Reversing Lower into Final Hour on Rising Long-Term Rates, More Emerging Markets Debt Angst, Mideast Unrest, Homebuilding/Commodity Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Light

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 15.01 +4.45%

• Euro/Yen Carry Return Index 135.74 +.05%

• Emerging Markets Currency Volatility(VXY) 10.26 +6.43%

• S&P 500 Implied Correlation 51.61 +2.32%

• ISE Sentiment Index 100.0 +28.21%

• Total Put/Call .89 -2.20%

• NYSE Arms 1.20 +9.22% 

Credit Investor Angst:

• North American Investment Grade CDS Index 83.19 +2.02%

• European Financial Sector CDS Index 145.61 +4.42%

• Western Europe Sovereign Debt CDS Index 82.0 -.35%

• Emerging Market CDS Index 331.79 +4.20%

• 2-Year Swap Spread 19.25 +.5 bp

• TED Spread 22.75 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -9.0 +.25 bp

Economic Gauges:

• 3-Month T-Bill Yield .04% unch.

• Yield Curve 252.0 +4 bps

• China Import Iron Ore Spot $139.20/Metric Tonne +.94%

• Citi US Economic Surprise Index 35.10 -1.5 points

• Citi Emerging Markets Economic Surprise Index -27.10 +2.4 points

• 10-Year TIPS Spread 2.14 -3 bps

Overseas Futures:

• Nikkei Futures: Indicating -158 open in Japan

• DAX Futures: Indicating -17 open in Germany

Portfolio: 

• Slightly Higher: On gains in my tech/medical sector longs, index hedges and emerging markets shorts

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 25% Net Long