Stocks Sharply Lower into Final Hour on Rising Mideast Unrest, Increasing Eurozone/Emerging Markets Debt Angst, Global Growth Fears, Financial/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) 16.85 +12.41%

• Euro/Yen Carry Return Index 135.62 -1.33%

• Emerging Markets Currency Volatility(VXY) 11.40 +3.54%

• S&P 500 Implied Correlation 54.78 +7.33%

• ISE Sentiment Index 89.0 -15.24%

• Total Put/Call 1.01 +13.48%

• NYSE Arms 1.73 +31.43% 

Credit Investor Angst:

• North American Investment Grade CDS Index 83.23 +4.62%

• European Financial Sector CDS Index 150.44 +7.1%

• Western Europe Sovereign Debt CDS Index 88.63 +4.8%

• Emerging Market CDS Index 342.50 +5.42%

• 2-Year Swap Spread 18.25 unch.

• TED Spread 22.75 -2.0 bps

• 3-Month EUR/USD Cross-Currency Basis Swap -10.0 -.25 bp

Economic Gauges:

• 3-Month T-Bill Yield .03% +1 bp

• Yield Curve 236.0 -6 bps

• China Import Iron Ore Spot $138.70/Metric Tonne unch.

• Citi US Economic Surprise Index 26.0 +2.7 points

• Citi Emerging Markets Economic Surprise Index -23.0 +1.4 points

• 10-Year TIPS Spread 2.17 +1 bp

Overseas Futures:

• Nikkei Futures: Indicating -280 open in Japan

• DAX Futures: Indicating -30 open in Germany

Portfolio: 

• Slightly Lower: On losses in my biotech/retail/medical/tech sector longs

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

• Market Exposure: Moved to 25% Net Long