Stocks Lower into Final Hour on Rising Emerging Markets Debt Angst, Higher Long-Term Rates, Technical Selling, Transport/Tech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 13.36 +1.98%

• Euro/Yen Carry Return Index 141.38 +.39%

• Emerging Markets Currency Volatility(VXY) 8.48 +1.44%

• S&P 500 Implied Correlation 33.41 unch.

• ISE Sentiment Index 154.0 +60.42%

• Total Put/Call .82 +5.13%

• NYSE Arms .91 -26.21% 

Credit Investor Angst:

• North American Investment Grade CDS Index 72.26 +1.20%

• European Financial Sector CDS Index 109.19 +3.21%

• Western Europe Sovereign Debt CDS Index 62.50 -2.34%

• Emerging Market CDS Index 291.62 +3.11%

• 2-Year Swap Spread 11.25 +.75 basis point

• TED Spread 16.75 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -2.25 +.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .07% unch.

• Yield Curve 242.0 +3 basis points

• China Import Iron Ore Spot $136.30/Metric Tonne -.51%

• Citi US Economic Surprise Index 5.20 +.2 point

• Citi Emerging Markets Economic Surprise Index -13.90 -1.8 points

• 10-Year TIPS Spread 2.19 -1 basis point

Overseas Futures:

• Nikkei Futures: Indicating +109 open in Japan

• DAX Futures: Indicating -1 open in Germany

Portfolio: 

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

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

• Market Exposure: 25% Net Long