Stocks Falling into Final Hour on Rising Emerging Markets Debt Angst, Russia/Ukraine Tensions, Margin Selling, Financial/Energy 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) 15.38 +10.17%

• Euro/Yen Carry Return Index 147.89 +.14%

• Emerging Markets Currency Volatility(VXY) 8.21 -.61%

• S&P 500 Implied Correlation 55.63 +3.95%

• ISE Sentiment Index 71.0 -11.25%

• Total Put/Call 1.0 +5.26% 

• NYSE Arms 1.15 -5.60% 

Credit Investor Angst:

• North American Investment Grade CDS Index 67.97 +1.20%

• European Financial Sector CDS Index 83.96 +.89%

• Western Europe Sovereign Debt CDS Index 42.25 -2.56%
• Asia Pacific Sovereign Debt CDS Index 90.70 +2.16%

• Emerging Market CDS Index 279.41 +.48%

• China Blended Corporate Spread Index 354.14 +.83%
• 2-Year Swap Spread 13.0 +.25 basis point

• TED Spread 21.0 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -1.25 -.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .02% unch.

• Yield Curve 230.0 -1.0 basis point

• China Import Iron Ore Spot $117.20/Metric Tonne +1.30%

• Citi US Economic Surprise Index -45.90 -2.1 points

• Citi Emerging Markets Economic Surprise Index -4.90 +1.0 point

• 10-Year TIPS Spread 2.13 -2.o basis points

Overseas Futures:

• Nikkei Futures: Indicating -23 open in Japan

• DAX Futures: Indicating -8 open in Germany

Portfolio: 

• Slightly Higher: On gains in my biotech sector longs and index hedges

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 50% Net Long