Stocks Reversing Lower into Final Hour on Rising Long-Term Rates, European/Emerging Markets/US High-Yield Debt Angst, Global Growth Fears, Energy/Homebuilding 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) 13.49 +4.90%

• Euro/Yen Carry Return Index 139.81 -.35%

• Emerging Markets Currency Volatility(VXY) 10.10 +.30%

• S&P 500 Implied Correlation 64.18 -.12%

• ISE Sentiment Index 69.0 -24.18%

• Total Put/Call .46 -45.88%

• NYSE Arms 1.05 +44.54% 

Credit Investor Angst:

• North American Investment Grade CDS Index 64.76 +2.73%

• America Energy Sector High-Yield CDS Index 1,073.0 -.19%

• European Financial Sector CDS Index 72.88 +1.50%

• Western Europe Sovereign Debt CDS Index 22.59 -1.29%

• Asia Pacific Sovereign Debt CDS Index 58.80 -.84%

• Emerging Market CDS Index 294.16 +.93%
  

• iBoxx Offshore RMB China Corporates High Yield Index 118.29 +.25%

• 2-Year Swap Spread 26.75 +.25 basis point

• TED Spread 27.5 +1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -20.75 +.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 166.0 +9.0 basis points

• China Import Iron Ore Spot $63.02/Metric Tonne +2.64%

• Citi US Economic Surprise Index -61.0 +3.3 points

• Citi Eurozone Economic Surprise Index 10.5 -3.7 points

• Citi Emerging Markets Economic Surprise Index -15.8 +1.3 points

• 10-Year TIPS Spread 1.88 unch.

Overseas Futures:

• Nikkei Futures: Indicating -1 open in Japan

• DAX Futures: Indicating -53 open in Germany

Portfolio: 

• Slightly Higher: On gains in my biotech/retail sector longs and emerging market shorts

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

• Market Exposure: Moved to 25% Net Long