Stocks Substantially Lower into Final Hour on Rising European/Emerging Markets Debt Angst, Russia/Ukraine Tensions, Global Growth Fears, Biotech/Tech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Above Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 16.19 +11.89%

• Euro/Yen Carry Return Index 146.92 -1.45%

• Emerging Markets Currency Volatility(VXY) 8.83 -.90%

• S&P 500 Implied Correlation 57.52 +4.96%

• ISE Sentiment Index 73.0 -23.16%

• Total Put/Call .95 -1.04%

• NYSE Arms 2.13 +94.0% 

Credit Investor Angst:

• North American Investment Grade CDS Index 67.45 +3.32%

• European Financial Sector CDS Index 94.84 +5.91%

• Western Europe Sovereign Debt CDS Index 49.01 unch.
• Asia Pacific Sovereign Debt CDS Index 101.02 +.81%

• Emerging Market CDS Index 327.78 +1.49%

• China Blended Corporate Spread Index 372.16 +1.76%
• 2-Year Swap Spread 14.13 +.89%

• TED Spread 19.25 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -4.75 -.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .04% unch.

• Yield Curve 231.0 -5.0 basis points

• China Import Iron Ore Spot $111.50/Metric Tonne +3.82%

• Citi US Economic Surprise Index -30.10 +4.0 points

• Citi Emerging Markets Economic Surprise Index -2.20 -5.8 points

• 10-Year TIPS Spread 2.17 -2.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating -430 open in Japan

• DAX Futures: Indicating -85 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