Stocks Reversing Lower into Final Hour on Surging Emerging Markets/Eurozone/US High-Yield Debt Angst, Global Growth Fears, Yen Strength, Biotech/Commodity Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Around Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 20.78 -1.42%

• Euro/Yen Carry Return Index 152.86 -1.12%

• Emerging Markets Currency Volatility(VXY) 10.82 +10.97%

• S&P 500 Implied Correlation 69.97 -1.58%

• ISE Sentiment Index 60.0 -10.45%

• Total Put/Call 1.05 -3.67%

• NYSE Arms 1.22 -16.39% 

Credit Investor Angst:

• North American Investment Grade CDS Index 74.23 +2.25% 

• America Energy Sector High-Yield CDS Index 660.0 +1.10%

• European Financial Sector CDS Index 70.91 +9.59%

• Western Europe Sovereign Debt CDS Index 31.67 +1.10%

• Asia Pacific Sovereign Debt CDS Index 74.50 -.33%

• Emerging Market CDS Index 416.86 +7.61%

• China Blended Corporate Spread Index 345.18 +3.51%

• 2-Year Swap Spread 23.75 -.25 basis point

• TED Spread 22.75 +.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -9.0 -1.0 basis point

Economic Gauges:

• 3-Month T-Bill Yield .01% -1.0 basis point

• Yield Curve 153.0 -2.0 basis points

• China Import Iron Ore Spot $69.06/Metric Tonne +.10%

• Citi US Economic Surprise Index 34.40 +4.8 points

• Citi Eurozone Economic Surprise Index -19.60 +.7 point

• Citi Emerging Markets Economic Surprise Index -15.20 +.3 point

• 10-Year TIPS Spread 1.62 -1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating -314 open in Japan

• DAX Futures: Indicating +21 open in Germany

Portfolio: 

• Slightly Higher: On gains in my retail sector longs, index hedges and emerging markets shorts

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added them back

• Market Exposure: 25% Net Long