Stocks Falling into Final Hour on Rising Emerging Markets Debt Angst, Fed Statements, Higher Long-Term Rates, Gaming/REIT Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Slightly Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 14.30 -1.52%

• Euro/Yen Carry Return Index 147.85 +.27%

• Emerging Markets Currency Volatility(VXY) 8.97 +.56%

• S&P 500 Implied Correlation 52.93 -1.38%

• ISE Sentiment Index 151.0 -3.82%

• Total Put/Call .75 +1.35%

• NYSE Arms .80 -.10% 

Credit Investor Angst:

• North American Investment Grade CDS Index 63.64 +.74%

• European Financial Sector CDS Index 87.38 -.84%

• Western Europe Sovereign Debt CDS Index 47.89 -.95%

• Asia Pacific Sovereign Debt CDS Index 96.37 +.10%

• Emerging Market CDS Index 319.06 +1.02%

• China Blended Corporate Spread Index 389.44 +2.01%

• 2-Year Swap Spread 11.75 -1.75 basis points

• TED Spread 18.25 -.75 basis point

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

Economic Gauges:

• 3-Month T-Bill Yield .05% unch.

• Yield Curve 234.0 +1.0 basis point

• China Import Iron Ore Spot $110.50/Metric Tonne unch.

• Citi US Economic Surprise Index -34.80 -1.3 points

• Citi Emerging Markets Economic Surprise Index -6.10 unch.

• 10-Year TIPS Spread 2.18 -1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating +119 open in Japan

• DAX Futures: Indicating -35 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long