Stocks Reversing Slightly Lower into Final Hour on Rising Long-Term Rates, US High-Yield Debt Angst, Technical Selling, Commodity/Telecom Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 12.85 +.94%

• Euro/Yen Carry Return Index 140.69 -.81%

• Emerging Markets Currency Volatility(VXY) 9.42 +.21%

• S&P 500 Implied Correlation 62.80 -3.03%

• ISE Sentiment Index 129.0 -3.01%

• Total Put/Call 1.08 +12.5%

• NYSE Arms 1.12 +6.89% 

Credit Investor Angst:

• North American Investment Grade CDS Index 63.45 +.08%

• America Energy Sector High-Yield CDS Index 1,079.0 +.96%

• European Financial Sector CDS Index 72.95 -5.3%

• Western Europe Sovereign Debt CDS Index 21.77 -2.25%

• Asia Pacific Sovereign Debt CDS Index 59.0 -.85%

• Emerging Market CDS Index 289.08 +.25%
  

• iBoxx Offshore RMB China Corporates High Yield Index 119.22 +.03%

• 2-Year Swap Spread 25.75 -.25 basis point

• TED Spread 26.75 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -19.5 -.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 166.0 unch.

• China Import Iron Ore Spot $58.53/Metric Tonne -3.5%

• Citi US Economic Surprise Index -64.5 +7.9 points

• Citi Eurozone Economic Surprise Index -4.50 -5.1 points

• Citi Emerging Markets Economic Surprise Index -10.7 +.7 point

• 10-Year TIPS Spread 1.88 unch.

Overseas Futures:

• Nikkei 225 Futures: Indicating +118 open in Japan 
• China A50 Futures: Indicating +53 open in China

• DAX Futures: Indicating -21 open in Germany

Portfolio: 

• Slightly Lower: On losses in my tech/retail sector longs and emerging markets shorts

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

• Market Exposure: Moved to 25% Net Long