Stocks Slightly Lower into Final Hour on US Debt Ceiling/Shutdown Concerns, Global Growth Fears, Yen Strength, Transport/Defense Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 16.69 +7.40%

• Euro/Yen Carry Return Index 137.92  -.23%

• Emerging Markets Currency Volatility(VXY) 9.91 -1.29%

• S&P 500 Implied Correlation 48.67 +4.64%

• ISE Sentiment Index 134.0 +19.64%

• Total Put/Call .76 -10.59%

• NYSE Arms .67 -4.09% 

Credit Investor Angst:

• North American Investment Grade CDS Index 79.66 +.34%

• European Financial Sector CDS Index 139.61 +.27%

• Western Europe Sovereign Debt CDS Index 81.50 -.61%

• Emerging Market CDS Index 293.44 +2.06%

• 2-Year Swap Spread 13.25 unch.

• TED Spread 23.0 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -6.0 unch.

Economic Gauges:

• 3-Month T-Bill Yield .02% unch.

• Yield Curve 230.0 -1 basis point

• China Import Iron Ore Spot $131.40/Metric Tonne unch.

• Citi US Economic Surprise Index 51.70 -1.6 points

• Citi Emerging Markets Economic Surprise Index -.10 -.7 point

• 10-Year TIPS Spread 2.21 +1 basis point

Overseas Futures:

• Nikkei Futures: Indicating +80 open in Japan

• DAX Futures: Indicating +17 open in Germany

Portfolio: 

• Slightly Higher: On gains in my tech sector longs and index hedges

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

• Market Exposure: 50% Net Long