Stocks Reversing Lower into Final Hour on Global Growth Fears, Rising European/Emerging Markets Debt Angst, Escalating Mideast Tensions, Healthcare/Transport Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 14.59 +6.57%

• Euro/Yen Carry Return Index 146.24 +.16%

• Emerging Markets Currency Volatility(VXY) 7.38 -.40%

• S&P 500 Implied Correlation 53.43 +5.16%

• ISE Sentiment Index 78.0 +32.20%

• Total Put/Call 1.07 +.94%

• NYSE Arms .95 -22.92% 

Credit Investor Angst:

• North American Investment Grade CDS Index 59.98 +2.04%

• European Financial Sector CDS Index 59.66 +3.11%

• Western Europe Sovereign Debt CDS Index 28.29 +6.65%

• Asia Pacific Sovereign Debt CDS Index 64.66 +1.94%

• Emerging Market CDS Index 258.13 +.11%

• China Blended Corporate Spread Index 307.85 +.86%

• 2-Year Swap Spread 24.75 +.25 basis point

• TED Spread 22.75 +.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -8.25 +2.0 basis points

Economic Gauges:

• 3-Month T-Bill Yield .00% unch.

• Yield Curve 200.0 -2.0 basis points

• China Import Iron Ore Spot $79.40/Metric Tonne -.50%

• Citi US Economic Surprise Index 21.10 +.1 point

• Citi Emerging Markets Economic Surprise Index -18.60 +3.2 points

• 10-Year TIPS Spread 2.02 +3.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating -105 open in Japan

• DAX Futures: Indicating -14 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 25% Net Long