Stocks Reversing Lower into Afternoon on China Bubble Bursting Fears, Greece Debt Deal Worries, Emerging Markets/US High-Yield Debt Angst, Biotech/Tech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Slightly Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 14.74 +5.21%

• Euro/Yen Carry Return Index 144.31 -.26%

• Emerging Markets Currency Volatility(VXY) 8.78 +1.74%

• S&P 500 Implied Correlation 61.71 +.50%

• ISE Sentiment Index 78.0 -13.33%

• Total Put/Call 1.09 +.93%

• NYSE Arms .84 -32.92% 

Credit Investor Angst:

• North American Investment Grade CDS Index 67.40 +.21%

• America Energy Sector High-Yield CDS Index 1,102.0 +2.81%

• European Financial Sector CDS Index 76.74 -.53%

• Western Europe Sovereign Debt CDS Index 22.18 -2.59%

• Asia Pacific Sovereign Debt CDS Index 58.12 +1.24%

• Emerging Market CDS Index 303.64 +.77%
  

• iBoxx Offshore RMB China Corporates High Yield Index 120.86 +.04%

• 2-Year Swap Spread 23.25 +.5 basis point

• TED Spread 28.0 +1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -20.50 -1.5 basis points

Economic Gauges:

• 3-Month T-Bill Yield .00% unch.

• Yield Curve 177.0 +6.0 basis points

• China Import Iron Ore Spot $62.01/Metric Tonne -.29%

• Citi US Economic Surprise Index -30.60 +2.1 points

• Citi Eurozone Economic Surprise Index 7.4 -2.1 points

• Citi Emerging Markets Economic Surprise Index -20.80 -.5 point

• 10-Year TIPS Spread 1.94 +1.0 basis point

Overseas Futures:

• Nikkei 225 Futures: Indicating +199 open in Japan 
• China A50 Futures: Indicating -629 open in China

• DAX Futures: Indicating -13 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 25% Net Long