Stocks Slightly Lower into Final Hour on Fed Rate Hike Fears, Eurozone/Emerging Markets Debt Angst, Earnings Concerns, Road & Rail/Construction Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 11.99 -.99%

• Euro/Yen Carry Return Index 139.77 -.54%

• Emerging Markets Currency Volatility(VXY) 9.06 -1.63%

• S&P 500 Implied Correlation 59.90 -1.27%

• ISE Sentiment Index 140.0 +25.0%

• Total Put/Call .88 -6.38%

• NYSE Arms 1.02 +16.26% 

Credit Investor Angst:

• North American Investment Grade CDS Index 63.79 +.63%

• America Energy Sector High-Yield CDS Index 1,090.0 -1.48%

• European Financial Sector CDS Index 73.66 +2.86%

• Western Europe Sovereign Debt CDS Index 21.68 -.87%

• Asia Pacific Sovereign Debt CDS Index 58.31 +.02%

• Emerging Market CDS Index 286.13 +1.26%
  

• iBoxx Offshore RMB China Corporates High Yield Index 119.53 -.03%

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

• TED Spread 27.25 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -20.75 -1.5 basis points

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 159.0 -2.0 basis points

• China Import Iron Ore Spot $59.96/Metric Tonne +3.54%

• Citi US Economic Surprise Index -62.1 +3.2 points

• Citi Eurozone Economic Surprise Index -11.10 +.6 point

• Citi Emerging Markets Economic Surprise Index -15.2 -1.4 points

• 10-Year TIPS Spread 1.90 +3.0 basis points

Overseas Futures:

• Nikkei 225 Futures: Indicating +135 open in Japan 
• China A50 Futures: Indicating +158 open in China

• DAX Futures: Indicating +9 open in Germany

Portfolio: 

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 75% Net Long