Stocks Reversing Lower into Final Hour on Earnings Worries, Euro Weakness, Technical Selling, Commodity/Road & Rail Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: About Even
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 14.0 +11.29%

• Euro/Yen Carry Return Index 132.60 -.38%

• Emerging Markets Currency Volatility(VXY) 9.97 +.71%

• S&P 500 Implied Correlation 63.58 +2.25%

• ISE Sentiment Index 137.0 +28.04%

• Total Put/Call .89 +4.71%

• NYSE Arms .89 +11.93% 

Credit Investor Angst:

• North American Investment Grade CDS Index 61.52 +1.72%

• America Energy Sector High-Yield CDS Index 1,115.0 -1.28%

• European Financial Sector CDS Index 62.54 +.12%

• Western Europe Sovereign Debt CDS Index 21.90 -.05%

• Asia Pacific Sovereign Debt CDS Index 58.80 +.67%

• Emerging Market CDS Index 297.93 +.20%
  

• iBoxx Offshore RMB China Corporates High Yield Index 115.72 +.42%

• 2-Year Swap Spread 26.25 -.25 basis point

• TED Spread 26.25 +1.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -22.0 -.75 basis point

Economic Gauges:

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

• Yield Curve 140.0 +1.0 basis point

• China Import Iron Ore Spot $48.82/Metric Tonne +2.71%

• Citi US Economic Surprise Index -45.60 +6.6 points

• Citi Eurozone Economic Surprise Index 56.20 -.7 point

• Citi Emerging Markets Economic Surprise Index -6.2 -15.2 points

• 10-Year TIPS Spread 1.81 -1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating +3 open in Japan

• DAX Futures: Indicating -25 open in Germany

Portfolio: 

• Slightly Higher: On gains in my biotech/retail sector longs

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

• Market Exposure: Moved to 25% Net Long