Stocks Reversing Lower into Final Hour on Terrorism Fears, Global Growth Worries, Technical Selling, Transport/Commodity Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Slightly Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 17.78 +10.57%

• Euro/Yen Carry Return Index 141.55 -.37%

• Emerging Markets Currency Volatility(VXY) 8.14 -1.33%

• S&P 500 Implied Correlation 66.16 +11.49%

• ISE Sentiment Index 76.0 -17.39%

• Total Put/Call 1.10 +5.77%

• NYSE Arms 1.52 +65.08% 

Credit Investor Angst:

• North American Investment Grade CDS Index 66.94 +1.34%

• European Financial Sector CDS Index 68.79 -2.65%

• Western Europe Sovereign Debt CDS Index 32.39 -2.45%
• Asia Pacific Sovereign Debt CDS Index 67.44 -1.35%

• Emerging Market CDS Index 261.35 +.18%

• China Blended Corporate Spread Index 336.32 -1.62%
• 2-Year Swap Spread 25.25 -.25 basis point

• TED Spread 21.75 -1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -8.75 -.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .02% +1.0 basis point

• Yield Curve 186.0 unch.

• China Import Iron Ore Spot $81.83/Metric Tonne unch.

• Citi US Economic Surprise Index 19.90 -.9 point
• Citi Eurozone Economic Surprise Index -53.5 +1.2 points

• Citi Emerging Markets Economic Surprise Index -19.60 +1.0 point

• 10-Year TIPS Spread 1.91 unch.

Overseas Futures:

• Nikkei Futures: Indicating -20 open in Japan

• DAX Futures: Indicating -61 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 (EEM) short

• Market Exposure: Moved to 25% Net Long