Stocks Falling into Final Hour on Fed Taper Worries, Rising Eurozone/Emerging Markets Debt Angst, Yen Strength, Financial/Transport 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) 14.77 +3.79%

• Euro/Yen Carry Return Index 145.02 -.23%

• Emerging Markets Currency Volatility(VXY) 9.06 +1.23%

• S&P 500 Implied Correlation 55.11 +.99%

• ISE Sentiment Index 78.0 -33.33%

• Total Put/Call .85 +13.33%

• NYSE Arms 1.27 +53.30% 

Credit Investor Angst:

• North American Investment Grade CDS Index 70.63 +1.42%

• European Financial Sector CDS Index 98.40 +3.22%

• Western Europe Sovereign Debt CDS Index 60.0 unch.

• Emerging Market CDS Index 301.99 +.64%

• 2-Year Swap Spread 9.75 +.25 basis point

• TED Spread 20.50 +1.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -2.75 unch.

Economic Gauges:

• 3-Month T-Bill Yield .04% -1 basis point

• Yield Curve 250.0 -1 basis point

• China Import Iron Ore Spot $138.20/Metric Tonne +1.02%
  

• Citi US Economic Surprise Index 5.10 -2.9 points

• Citi Emerging Markets Economic Surprise Index -11.60 +3.9 points

• 10-Year TIPS Spread 2.14 -2 basis points

Overseas Futures:

• Nikkei Futures: Indicating -250 open in Japan

• DAX Futures: Indicating -5 open in Germany

Portfolio: 

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

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

• Market Exposure: 25% Net Long