Stocks Falling into Afternoon on Rising Global Growth Worries, Escalating Eurozone Debt Angst, Fed Rate Hike Fears, Transport/Financial Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 13.64 +2.48%

• Euro/Yen Carry Return Index 142.30 +.40%

• Emerging Markets Currency Volatility(VXY) 9.37 -.21%

• S&P 500 Implied Correlation 61.60 +2.67%

• ISE Sentiment Index 93.0 +24.0%

• Total Put/Call 1.16 +7.41%

• NYSE Arms 1.18 +4.70% 

Credit Investor Angst:

• North American Investment Grade CDS Index 64.0 +.19%

• America Energy Sector High-Yield CDS Index 1,108.0 +1.71%

• European Financial Sector CDS Index 76.51 +2.74%

• Western Europe Sovereign Debt CDS Index 23.37 +5.84%

• Asia Pacific Sovereign Debt CDS Index 59.63 +2.25%

• Emerging Market CDS Index 290.30 +.56%
  

• iBoxx Offshore RMB China Corporates High Yield Index 120.09 +.11%

• 2-Year Swap Spread 24.5 +.75 basis point

• TED Spread 28.75 +1.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -21.50 -.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .00% unch.

• Yield Curve 149.0 -2.0 basis points

• China Import Iron Ore Spot $61.85/Metric Tonne -.77%

• Citi US Economic Surprise Index -54.20 +2.6 points

• Citi Eurozone Economic Surprise Index -13.90 -2.1 points

• Citi Emerging Markets Economic Surprise Index -20.4 -1.6 points

• 10-Year TIPS Spread 1.83 +2.0 basis points

Overseas Futures:

• Nikkei 225 Futures: Indicating -132 open in Japan 
• China A50 Futures: Indicating -124 open in China

• DAX Futures: Indicating +21 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long