Stocks Reversing Slightly Lower into Final Hour on Rising Emerging Markets Currency/Debt Angst, Global Growth Worries, Technical Selling, Biotech/Telecom Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 14.39 +5.27%

• Euro/Yen Carry Return Index 146.20 -.24%

• Emerging Markets Currency Volatility(VXY) 8.93 +2.53%

• S&P 500 Implied Correlation 53.42 +2.67%

• ISE Sentiment Index 106.0 +2.91%

• Total Put/Call .81 -2.41%

• NYSE Arms 1.31 +11.87% 

Credit Investor Angst:

• North American Investment Grade CDS Index 64.88 +.64%

• European Financial Sector CDS Index 88.54 +1.90%

• Western Europe Sovereign Debt CDS Index 53.0 unch.

• Asia Pacific Sovereign Debt CDS Index 103.04 -.19%

• Emerging Market CDS Index 311.57 +2.63%

• China Blended Corporate Spread Index 362.42 +1.10%

• 2-Year Swap Spread 11.25 -2.25 basis points

• TED Spread 19.25 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -5.75 unch.

Economic Gauges:

• 3-Month T-Bill Yield .04% unch.

• Yield Curve 234.0 -5.0 basis points

• China Import Iron Ore Spot $117.80/Metric Tonne -1.09%

• Citi US Economic Surprise Index -11.40 +3.2 points

• Citi Emerging Markets Economic Surprise Index 13.30 -.6 point

• 10-Year TIPS Spread 2.17 unch.

Overseas Futures:

• Nikkei Futures: Indicating -55 open in Japan

• DAX Futures: Indicating -20 open in Germany

Portfolio: 

• Slightly Lower: On losses in my biotech sector longs and index hedges

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

• Market Exposure: 25% Net Long