Stocks Lower into Afternoon on Rising Emerging Markets Debt Angst, Fed Taper Worries, Technical Selling, Commodity/Financial 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) 12.47 -3.33%

• Euro/Yen Carry Return Index 139.57 +.68%

• Emerging Markets Currency Volatility(VXY) 9.52 -.73%

• S&P 500 Implied Correlation 39.11 +3.73%

• ISE Sentiment Index 120.0 +12.15%

• Total Put/Call .75 -6.25%

• NYSE Arms .99 +12.93% 

Credit Investor Angst:

• North American Investment Grade CDS Index 73.28 +2.54%

• European Financial Sector CDS Index 106.86 +3.13%

• Western Europe Sovereign Debt CDS Index 62.70 -3.78%

• Emerging Market CDS Index 303.44 +1.07%

• 2-Year Swap Spread 10.5 -1 basis point

• TED Spread 18.25 -.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -3.5 unch.

Economic Gauges:

• 3-Month T-Bill Yield .06% unch.

• Yield Curve 244.0 unch.

• China Import Iron Ore Spot $135.90/Metric Tonne unch.

• Citi US Economic Surprise Index 17.60 -1.3 points

• Citi Emerging Markets Economic Surprise Index -14.80 -3.6 points

• 10-Year TIPS Spread 2.19 +2 basis points

Overseas Futures:

• Nikkei Futures: Indicating -63 open in Japan

• DAX Futures: Indicating -14 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long