Stocks Substantially Lower into Final Hour on Surging Eurozone Debt Angst, China Bubble Bursting Fears, Earnings Worries, Tech/Biotech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Every Sector Declining
  

• Volume: Slightly Above Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 14.75 +17.1%

• Euro/Yen Carry Return Index 133.91 +.13%

• Emerging Markets Currency Volatility(VXY) 9.89 +.41%

• S&P 500 Implied Correlation 68.47 +2.39%

• ISE Sentiment Index 75.0 -52.83%

• Total Put/Call 1.12 +30.23%

• NYSE Arms 1.13 -3.74% 

Credit Investor Angst:

• North American Investment Grade CDS Index 63.63 +3.35%

• America Energy Sector High-Yield CDS Index 1,064.0 -3.35%

• European Financial Sector CDS Index 75.68 +7.25%

• Western Europe Sovereign Debt CDS Index 26.35 +6.64%

• Asia Pacific Sovereign Debt CDS Index 61.0 +3.03%

• Emerging Market CDS Index 302.55 +1.54%
  

• iBoxx Offshore RMB China Corporates High Yield Index 116.52 +.25%

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

• TED Spread 26.0 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -23.75 -.5 basis point

Economic Gauges:

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

• Yield Curve 135.0 -5.0 basis points

• China Import Iron Ore Spot $50.93/Metric Tonne +2.31%

• Citi US Economic Surprise Index -54.20 +2.5 points

• Citi Eurozone Economic Surprise Index 53.40 -1.0 point

• Citi Emerging Markets Economic Surprise Index -11.5 +2.1 points

• 10-Year TIPS Spread 1.89 +4.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating -143 open in Japan

• DAX Futures: Indicating -3 open in Germany

Portfolio: 

• Slightly Lower: On losses in my tech/biotech/retail sector longs 

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

• Market Exposure: Moved to 25% Net Long