Stocks Falling into Final Hour on Escalating Russia-Ukraine/Mideast Tensions, Rising Emerging Markets/European Debt Angst, Hawkish Fed Commentary, Biotech/Financial Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Around Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 13.22 +20.2%

• Euro/Yen Carry Return Index 143.04 -.32%

• Emerging Markets Currency Volatility(VXY) 6.01 +2.21%

• S&P 500 Implied Correlation 52.52 +11.0%

• ISE Sentiment Index 91.0 -44.85%

• Total Put/Call .95 +17.28%

• NYSE Arms 1.02 +48.65% 

Credit Investor Angst:

• North American Investment Grade CDS Index 59.03 +3.65%

• European Financial Sector CDS Index 71.35 +4.10%

• Western Europe Sovereign Debt CDS Index 35.20 -1.61%

• Asia Pacific Sovereign Debt CDS Index 71.99 +1.91%

• Emerging Market CDS Index 242.82 +3.60%

• China Blended Corporate Spread Index 304.68 n/a

• 2-Year Swap Spread 19.25 +1.0 basis point

• TED Spread 22.75 +1.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -11.0 -.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .01% -1 basis point

• Yield Curve 201.0 -4.0 basis point

• China Import Iron Ore Spot $97.5/Metric Tonne -.51%

• Citi US Economic Surprise Index -16.7 -3.7 points

• Citi Emerging Markets Economic Surprise Index -4.50 -2.9 points

• 10-Year TIPS Spread 2.22 unch.

Overseas Futures:

• Nikkei Futures: Indicating -100 open in Japan

• DAX Futures: Indicating -30 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 emerging markets shorts

• Market Exposure: Moved to 25% Net Long