Stocks Slightly Lower into Final Hour on Euro Weakness, Rising Eurozone/Emerging Markets Debt Angst, Technical Selling, Commodity/Retail Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: About Even
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 12.87 +6.45%

• Euro/Yen Carry Return Index 142.74 +.42%

• Emerging Markets Currency Volatility(VXY) 6.53 +2.03%

• S&P 500 Implied Correlation 48.40 +2.76%

• ISE Sentiment Index 105.0 unch.

• Total Put/Call .87 -14.71%

• NYSE Arms 1.26 +33.69% 

Credit Investor Angst:

• North American Investment Grade CDS Index 56.94 +1.29%

• European Financial Sector CDS Index 57.06 +2.20%

• Western Europe Sovereign Debt CDS Index 26.75 +1.60%
• Asia Pacific Sovereign Debt CDS Index 62.15 +.06%

• Emerging Market CDS Index 241.88 +7.09%

• China Blended Corporate Spread Index 305.02 -.38%
• 2-Year Swap Spread 22.0 +.25 basis point

• TED Spread 20.75 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -18.75 +.75 basis points

Economic Gauges:

• 3-Month T-Bill Yield .02% unch.

• Yield Curve 195.0 unch.

• China Import Iron Ore Spot $83.60/Metric Tonne unch.

• Citi US Economic Surprise Index 38.0 +.1 point

• Citi Emerging Markets Economic Surprise Index -12.20 +1.2 basis points

• 10-Year TIPS Spread 2.14 -2.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating -22 open in Japan

• DAX Futures: Indicating -25 open in Germany

Portfolio: 

• Higher: On gains in my biotech/tech sector longs and emerging markets shorts

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges, then covered some of them

• Market Exposure: 50% Net Long