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

Broad Equity Market Tone:

• Advance/Decline Line: About Even
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 14.51 -1.49%
• Euro/Yen Carry Return Index 135.63 -.12%
• Emerging Markets Currency Volatility(VXY) 9.65 +2.66%
• S&P 500 Implied Correlation 50.58 -2.84%

• ISE Sentiment Index 81.0 -4.71%

• Total Put/Call .96 unch.

• NYSE Arms 1.03 +.89% 

Credit Investor Angst:

• North American Investment Grade CDS Index 81.0 +4.14%

• European Financial Sector CDS Index 139.44 -.33%

• Western Europe Sovereign Debt CDS Index 82.29 -.26%

• Emerging Market CDS Index 318.80 +3.29%

• 2-Year Swap Spread 18.75 +1.0 bp

• TED Spread 22.75  +1 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -9.25 -.75 bp

Economic Gauges:

• 3-Month T-Bill Yield .04% -1 bp

• Yield Curve 248.0 +5 bps

• China Import Iron Ore Spot $137.90/Metric Tonne -2.34%

• Citi US Economic Surprise Index 36.60 -4.0 points
• Citi Emerging Markets Economic Surprise Index -29.50 +.2 point

• 10-Year TIPS Spread 2.17 -1 bp

Overseas Futures:

• Nikkei Futures: Indicating -5 open in Japan

• DAX Futures: Indicating -4 open in Germany

Portfolio: 

• Slightly Higher: On gains in my index hedges and emerging markets shorts
• Disclosed Trades: Added to my (IWM)/(QQQ) hedges and then covered some of them
• Market Exposure: 50% Net Long