Stocks Reversing Lower into Final Hour on Rising Eurozone/Emerging Markets Debt Angst, Fed Rate Hike Fears, Earnings Worries, Utility/REIT Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Slightly Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 17.66 +4.99%

• Euro/Yen Carry Return Index 140.84 -.08%

• Emerging Markets Currency Volatility(VXY) 10.91 +2.35%

• S&P 500 Implied Correlation 67.36 +3.33%

• ISE Sentiment Index 68.0 -43.80%

• Total Put/Call .97 +1.04%

• NYSE Arms .67 -9.43% 

Credit Investor Angst:

• North American Investment Grade CDS Index 66.44 +.14%
• America Energy Sector High-Yield CDS Index 730.0 -1.55%

• European Financial Sector CDS Index 62.93 +1.47%

• Western Europe Sovereign Debt CDS Index 25.48 +2.37%
• Asia Pacific Sovereign Debt CDS Index 67.50 -.28%

• Emerging Market CDS Index 377.70 -.26%

• iBoxx Offshore RMB China Corporates High Yield Index 113.64 +.03%
• 2-Year Swap Spread 26.75 +1.75 basis points

• TED Spread 24.5 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -19.25 -2.0 basis point

Economic Gauges:

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

• Yield Curve 130.0 +1.0 basis point

• China Import Iron Ore Spot $62.49/Metric Tonne +1.38%

• Citi US Economic Surprise Index -25.30 +1.9 points
• Citi Eurozone Economic Surprise Index 24.80 -.9 point

• Citi Emerging Markets Economic Surprise Index -5.30 -.8 point

• 10-Year TIPS Spread 1.72 +3.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating +192 open in Japan

• DAX Futures: Indicating -69 open in Germany

Portfolio: 

• 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