Stocks Lower into Final Hour on Rising US Debt Ceiling/Shutdown Worries, Earnings Concerns, Technical Selling, Homebuilding/Defense Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 17.89 +11.33%

• Euro/Yen Carry Return Index 138.69 -.54%

• Emerging Markets Currency Volatility(VXY) 8.88 -1.33%

• S&P 500 Implied Correlation 50.41 +12.25%

• ISE Sentiment Index 68.0 -26.88%

• Total Put/Call 1.01 +14.77%

• NYSE Arms .73 +9.54% 

Credit Investor Angst:

• North American Investment Grade CDS Index 77.35 +.74%

• European Financial Sector CDS Index 120.71 -5.77%

• Western Europe Sovereign Debt CDS Index 73.0 +.69%

• Emerging Market CDS Index 268.33 -2.62%

• 2-Year Swap Spread 12.75 -1.0 basis point

• TED Spread 14.75 -4.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -8.0 +1.25 basis points

Economic Gauges:

• 3-Month T-Bill Yield .10% +4 basis points

• Yield Curve 237.0 +4 basis points

• China Import Iron Ore Spot $133.60/Metric Tonne n/a

• Citi US Economic Surprise Index 30.90 -1.7 points

• Citi Emerging Markets Economic Surprise Index -8.80 +1.4 points

• 10-Year TIPS Spread 2.21 unch.

Overseas Futures:

• Nikkei Futures: Indicating +7 open in Japan

• DAX Futures: Indicating -17 open in Germany

Portfolio: 

• Slightly Higher: On gains in my index hedges and emerging markets shorts 

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

• Market Exposure: 25% Net Long