Stocks Falling into Final Hour on Escalating Iraq Tensions, Global Growth Fears, Yen Strength, Transport/Retail Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 12.50 +7.76%

• Euro/Yen Carry Return Index 143.96 -.12%

• Emerging Markets Currency Volatility(VXY) 6.54 -1.36%

• S&P 500 Implied Correlation 53.93 +4.77%

• ISE Sentiment Index 80.0 -21.57%

• Total Put/Call .82 +10.81%

• NYSE Arms 1.48 +45.74% 

Credit Investor Angst:

• North American Investment Grade CDS Index 59.64 +2.10%

• European Financial Sector CDS Index 60.02 -.17%

• Western Europe Sovereign Debt CDS Index 28.08 -.32%
• Asia Pacific Sovereign Debt CDS Index 76.61 +1.62%

• Emerging Market CDS Index 246.64 +1.99%

• China Blended Corporate Spread Index 311.51 -.20%
• 2-Year Swap Spread 14.75 +.25 basis point

• TED Spread 19.5 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -12.0 -2.5 basis points

Economic Gauges:

• 3-Month T-Bill Yield .03% unch.

• Yield Curve 217.0 -4.0 basis points

• China Import Iron Ore Spot $91.50/Metric Tonne -2.14%

• Citi US Economic Surprise Index -17.60 -4.6 points

• Citi Emerging Markets Economic Surprise Index -6.60 +3.0 points

• 10-Year TIPS Spread 2.19 -1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating -143 open in Japan

• DAX Futures: Indicating -38 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 25% Net Long