Stocks Slightly Lower into Close on Rising Emerging Markets Debt Angst, Rising Long-Term Rates, Technical Selling, Homebuilding/REIT Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 13.22 +2.32%

• Euro/Yen Carry Return Index 138.47 -.33%

• Emerging Markets Currency Volatility(VXY) 8.90 +4.34%

• S&P 500 Implied Correlation 39.29 +2.43%

• ISE Sentiment Index 143.0 +27.7%

• Total Put/Call .77 +2.67%

• NYSE Arms .98 +32.11% 

Credit Investor Angst:

• North American Investment Grade CDS Index 74.40 +1.57%

• European Financial Sector CDS Index 114.32 -.03%

• Western Europe Sovereign Debt CDS Index 67.0 -1.47%

• Emerging Market CDS Index 284.36 +3.45%

• 2-Year Swap Spread 12.0 +.25 basis point

• TED Spread 19.25 -1 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -4.25 +.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .05% +1 basis point

• Yield Curve 236.0 +6 basis points

• China Import Iron Ore Spot $136.80/Metric Tonne +.74%

• Citi US Economic Surprise Index 0.0 +3.8 points

• Citi Emerging Markets Economic Surprise Index -12.40 +.1 point

• 10-Year TIPS Spread 2.14 unch.

Overseas Futures:

• Nikkei Futures: Indicating -26 open in Japan

• DAX Futures: Indicating +3 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 50% Net Long