Stocks Falling into Final Hour on Rising European/Emerging Markets Debt Angst, Escalating Mideast Turmoil, Global Growth Worries, Financial/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) 12.43 +6.70%

• Euro/Yen Carry Return Index 143.84 -.64%

• Emerging Markets Currency Volatility(VXY) 5.89 +1.20%

• S&P 500 Implied Correlation 50.81 +3.74%

• ISE Sentiment Index 124.0 +12.73%

• Total Put/Call 1.06 +26.19%

• NYSE Arms .95 +48.48% 

Credit Investor Angst:

• North American Investment Grade CDS Index 58.05 +1.70%

• European Financial Sector CDS Index 71.57 +3.36%

• Western Europe Sovereign Debt CDS Index 36.40 +4.0%
• Asia Pacific Sovereign Debt CDS Index 71.47 +1.02%

• Emerging Market CDS Index 226.76 +3.30%

• China Blended Corporate Spread Index 300.05 -.40%
• 2-Year Swap Spread 16.75 +2.25 basis points

• TED Spread 21.75 +.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -11.75 unch.

Economic Gauges:

• 3-Month T-Bill Yield .02% unch.

• Yield Curve 208.0 +3.0 basis points

• China Import Iron Ore Spot $96.90/Metric Tonne +.31%

• Citi US Economic Surprise Index -12.60 +1.4 points

• Citi Emerging Markets Economic Surprise Index -6.0 -1.4 points

• 10-Year TIPS Spread 2.27 +1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating -140 open in Japan

• DAX Futures: Indicating +21 open in Germany

Portfolio: 

• Slightly Lower: On losses in my biotech/retail sector longs

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

• Market Exposure: Moved to 25% Net Long