Stocks Reversing Lower into Final Hour on Global Growth Fears, Surging Emerging Markets/Eurozone Debt Angst, Yen Strength, Energy/Gaming 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) 13.83 +17.01%

• Euro/Yen Carry Return Index 155.11 -.45%

• Emerging Markets Currency Volatility(VXY) 8.85 +1.61%

• S&P 500 Implied Correlation 66.66 +2.39%

• ISE Sentiment Index 66.0 -30.53%

• Total Put/Call 1.01 -1.94%

• NYSE Arms 1.35 +22.43% 

Credit Investor Angst:

• North American Investment Grade CDS Index 64.56 +3.43%

• European Financial Sector CDS Index 57.29 +2.35%

• Western Europe Sovereign Debt CDS Index 25.67 +1.62%
• Asia Pacific Sovereign Debt CDS Index 62.87 +1.85%

• Emerging Market CDS Index 322.23 +5.69%

• China Blended Corporate Spread Index 327.48 unch.
• 2-Year Swap Spread 22.0 +.75 basis point

• TED Spread 22.50 +.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -10.25 +.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 163.0 -4.0 basis points

• China Import Iron Ore Spot $69.80/Metric Tonne -2.74%

• Citi US Economic Surprise Index 15.90 +1.0 point
• Citi Eurozone Economic Surprise Index -21.40 +3.9 points

• Citi Emerging Markets Economic Surprise Index -6.8 -2.2 points

• 10-Year TIPS Spread 1.72 -3.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating -80 open in Japan

• DAX Futures: Indicating -40 open in Germany

Portfolio: 

• Higher: On gains in my biotech/medical sector longs, index hedges and emerging markets shorts

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

• Market Exposure: Moved to 25% Net Long