Stocks Slightly Lower into Afternoon on Rising Long-Term Rates, Surging European/Emerging Markets/US High-Yield Debt Angst, Earnings Concerns, Utilities/Metals & Mining Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 14.45 -1.77%

• Euro/Yen Carry Return Index 145.85 -.09%

• Emerging Markets Currency Volatility(VXY) 9.66 +.73%

• S&P 500 Implied Correlation 64.38 +1.92%

• ISE Sentiment Index 97.0 +15.5%

• Total Put/Call 1.04 -9.57%

• NYSE Arms .70 -57.71% 

Credit Investor Angst:

• North American Investment Grade CDS Index 66.74 +1.16%

• America Energy Sector High-Yield CDS Index 1,164.0 +1.97%

• European Financial Sector CDS Index 77.21 +3.46%

• Western Europe Sovereign Debt CDS Index 23.19 +3.55%

• Asia Pacific Sovereign Debt CDS Index 62.02 +.46%

• Emerging Market CDS Index 310.43 +2.92%
  

• iBoxx Offshore RMB China Corporates High Yield Index 120.11 +.05%

• 2-Year Swap Spread 24.75 +.25 basis point

• TED Spread 27.0 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -19.25 -.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 168.0 +4.0 basis points

• China Import Iron Ore Spot $64.45/Metric Tonne -.49%

• Citi US Economic Surprise Index -47.90 +2.6 points

• Citi Eurozone Economic Surprise Index 6.0 +1.6 points

• Citi Emerging Markets Economic Surprise Index -21.50 -2.0 points

• 10-Year TIPS Spread 1.88 +4.0 basis points

Overseas Futures:

• Nikkei 225 Futures: Indicating +103 open in Japan 
• China A50 Futures: Indicating -392 open in China

• DAX Futures: Indicating -12 open in Germany

Portfolio: 

• Higher: On gains in my biotech sector longs and emerging markets shorts

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

• Market Exposure: Moved to 50% Net Long