Stocks Slightly Lower into Final Hour on Rising Emerging Markets Debt Angst, Fed Rate Hike Fears, Global Growth Worries, Transport/Biotech 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) 13.62 +2.64%

• Euro/Yen Carry Return Index 141.73 +.60%

• Emerging Markets Currency Volatility(VXY) 9.55 +1.17%

• S&P 500 Implied Correlation 60.64 +.45%

• ISE Sentiment Index 62.0 -28.74%

• Total Put/Call 1.07 +.94%

• NYSE Arms 1.09 +36.24% 

Credit Investor Angst:

• North American Investment Grade CDS Index 63.82 +1.56%

• America Energy Sector High-Yield CDS Index 1,083.0 -1.15%

• European Financial Sector CDS Index 74.48 +1.40%

• Western Europe Sovereign Debt CDS Index 22.08 -2.28%

• Asia Pacific Sovereign Debt CDS Index 59.02 +.87%

• Emerging Market CDS Index 290.78 +1.64%
  

• iBoxx Offshore RMB China Corporates High Yield Index 119.96 +.06%

• 2-Year Swap Spread 23.75 +.5 basis point

• TED Spread 27.5 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -21.0 +1.25 basis points

Economic Gauges:

• 3-Month T-Bill Yield .00% -1.0 basis point

• Yield Curve 151.0 +2.0 basis points

• China Import Iron Ore Spot $62.33/Metric Tonne -1.22%

• Citi US Economic Surprise Index -56.80 -1.2 points

• Citi Eurozone Economic Surprise Index -11.80 -.8 point

• Citi Emerging Markets Economic Surprise Index -18.8 -1.5 points

• 10-Year TIPS Spread 1.81 -1.0 basis point

Overseas Futures:

• Nikkei 225 Futures: Indicating +2 open in Japan 
• China A50 Futures: Indicating -27 open in China

• DAX Futures: Indicating +9 open in Germany

Portfolio: 

• Higher: On gains in my retail/tech/medical sector longs and emerging markets shorts

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, added to my emerging markets shorts

• Market Exposure: 50% Net Long