Stocks Falling into Final Hour on Rising Emerging Markets Debt Angst, Surging Yen, Technical Selling, Transport/Technology Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Around Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 14.48 +5.69%

• Euro/Yen Carry Return Index 149.05 -1.28%

• Emerging Markets Currency Volatility(VXY) 9.58 +3.79%

• S&P 500 Implied Correlation 51.15 +2.71%

• ISE Sentiment Index 82.0 -46.41%

• Total Put/Call .87 +33.85%

• NYSE Arms 1.12 +46.76% 

Credit Investor Angst:

• North American Investment Grade CDS Index 63.34 +1.58%

• European Financial Sector CDS Index 85.02 -2.49%

• Western Europe Sovereign Debt CDS Index 56.0 -6.11%

• Emerging Market CDS Index 278.46 +1.82%

• 2-Year Swap Spread 10.25 -.25 basis point

• TED Spread 18.25 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -3.5 -.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .06% -1.0 basis point

• Yield Curve 260.0 -5.0 basis points

• China Import Iron Ore Spot $135.0/Metric Tonne +.6%
  

• Citi US Economic Surprise Index 53.30 +1.1 points

• Citi Emerging Markets Economic Surprise Index -4.10 +2.3 points

• 10-Year TIPS Spread 2.25 +2.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating -275 open in Japan

• DAX Futures: Indicating -11 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long