Stocks Falling into Final Hour on European/Emerging Markets Debt Angst, US Debt Ceiling Worries, Technical Selling, Homebuilding/Tech Sector Weakness

Click Here for Today's Market Take.

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 15.77 +12.16%

• Euro/Yen Carry Return Index 138.60 -.44%

• Emerging Markets Currency Volatility(VXY) 10.09 +1.61%

• S&P 500 Implied Correlation 47.85 +6.73%

• ISE Sentiment Index 79.0 -11.24%

• Total Put/Call .95 +35.71%

• NYSE Arms 1.13 +1.85% 

Credit Investor Angst:

• North American Investment Grade CDS Index 80.97 +1.54%

• European Financial Sector CDS Index 145.23 +3.21%

• Western Europe Sovereign Debt CDS Index 84.91 -.11%

• Emerging Market CDS Index 293.88 +3.78%

• 2-Year Swap Spread 14.0 +.75 basis point

• TED Spread 23.75 -1.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -6.5 -.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .01% +1 basis point

• Yield Curve 229.0 -1 basis point

• China Import Iron Ore Spot $131.90/Metric Tonne -1.42%

• Citi US Economic Surprise Index 46.5 -1.3 points

• Citi Emerging Markets Economic Surprise Index 4.20 +.3 point

• 10-Year TIPS Spread 2.18 -2 basis points

Overseas Futures:

• Nikkei Futures: Indicating -25 open in Japan

• DAX Futures: Indicating +12 open in Germany

Portfolio: 

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added them back

• Market Exposure: 25% Net Long