Stocks Slightly Lower into Final Hour on Rising Emerging Markets Debt Angst, Rising Long-Term Rates, Mideast Unrest, Retail/Metals & Mining Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Slightly Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 14.69 -1.48%
• Euro/Yen Carry Return Index 136.32 +.18%
• Emerging Markets Currency Volatility(VXY) 10.87 +5.64%
• S&P 500 Implied Correlation 49.62 -4.54%

• ISE Sentiment Index 82.0 -29.91%

• Total Put/Call .93 +3.33%

• NYSE Arms .96 -13.90% 

Credit Investor Angst:

• North American Investment Grade CDS Index 83.10 +1.12%

• European Financial Sector CDS Index 149.94 +2.53%

• Western Europe Sovereign Debt CDS Index 84.82 +1.58%

• Emerging Market CDS Index 338.08 +3.56%

• 2-Year Swap Spread 18.75 unch.

• TED Spread 23.25 +.5 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -9.25 unch.

Economic Gauges:

• 3-Month T-Bill Yield .03% -1 bp

• Yield Curve 250.0 +3 bps

• China Import Iron Ore Spot $137.80/Metric Tonne -.86%

• Citi US Economic Surprise Index 34.70 +.5 point
• Citi Emerging Markets Economic Surprise Index -32.30 -.8 point

• 10-Year TIPS Spread 2.16 -1 bp

Overseas Futures:

• Nikkei Futures: Indicating -24 open in Japan

• DAX Futures: Indicating +41 open in Germany

Portfolio: 

• Higher: On gains in my biotech/tech/medical sector longs and emerging markets shorts
• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
• Market Exposure: Moved to 50% Net Long