Stocks Reversing Slightly Lower into Final Hour on Rising Long-Term Rates, Global Growth Fears, Yen Strength, Transport/Utility 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) 13.89 +.22%

• Euro/Yen Carry Return Index 141.27 +.63%

• Emerging Markets Currency Volatility(VXY) 9.79 -1.81%

• S&P 500 Implied Correlation 63.54 -.95%

• ISE Sentiment Index 94.0 -2.08%

• Total Put/Call .84 -20.0%

• NYSE Arms 1.03 -5.26% 

Credit Investor Angst:

• North American Investment Grade CDS Index 65.40 +.36%

• America Energy Sector High-Yield CDS Index 1,056.0 -1.68%

• European Financial Sector CDS Index 74.12 -.39%

• Western Europe Sovereign Debt CDS Index 22.87 +.42%

• Asia Pacific Sovereign Debt CDS Index 60.41 +.65%

• Emerging Market CDS Index 293.50 -1.06%
  

• iBoxx Offshore RMB China Corporates High Yield Index 118.62 +.08%

• 2-Year Swap Spread 26.75 -.5 basis point

• TED Spread 26.75 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -18.5 +1.75 basis points

Economic Gauges:

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

• Yield Curve 170.0 +4.0 basis points

• China Import Iron Ore Spot $62.58/Metric Tonne -.48%

• Citi US Economic Surprise Index -63.80 -4.3 points

• Citi Eurozone Economic Surprise Index 2.50 -6.6 points

• Citi Emerging Markets Economic Surprise Index -18.6 -1.9 points

• 10-Year TIPS Spread 1.89 unch.

Overseas Futures:

• Nikkei 225 Futures: Indicating -102 open in Japan 
• China A50 Futures: Indicating -307 open in China

• DAX Futures: Indicating -36 open in Germany

Portfolio: 

• Slightly Higher: On gains in my tech sector longs

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

• Market Exposure: Moved to 25% Net Long