Stocks Falling into Final Hour on China Bubble-Bursting Fears, Global Growth Worries, Rising European/Emerging Markets/US High-Yield Debt Angst, Commodity/Financial Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Around Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 15.92 +15.87%

• Euro/Yen Carry Return Index 142.84 +.58%

• Emerging Markets Currency Volatility(VXY) 9.31 +1.97%

• S&P 500 Implied Correlation 61.46 +3.33%

• ISE Sentiment Index 89.0 +36.92%

• Total Put/Call 1.20 -13.67%

• NYSE Arms 1.25 -17.04% 

Credit Investor Angst:

• North American Investment Grade CDS Index 73.21 +3.07%

• America Energy Sector High-Yield CDS Index 1,633.0 +.74%

• European Financial Sector CDS Index 75.23 +5.33%

• Western Europe Sovereign Debt CDS Index 22.58 +2.26%

• Asia Pacific Sovereign Debt CDS Index 63.34 +3.09%

• Emerging Market CDS Index 325.30 +1.56%
  

• iBoxx Offshore RMB China Corporates High Yield Index 120.72 +.10%

• 2-Year Swap Spread 25.25 +.5 basis point

• TED Spread 26.25 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -19.0 +.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .03% unch.

• Yield Curve 158.0 unch.

• China Import Iron Ore Spot $52.35/Metric Tonne +1.81%

• Citi US Economic Surprise Index -10.5 +3.9 points

• Citi Eurozone Economic Surprise Index -3.7 +1.9 points

• Citi Emerging Markets Economic Surprise Index -13.6 +.9 point

• 10-Year TIPS Spread 1.73 -3.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 5.23 +.06

Overseas Futures:

• Nikkei 225 Futures: Indicating -203 open in Japan 
• China A50 Futures: Indicating -136 open in China

• DAX Futures: Indicating -7 open in Germany

Portfolio: 

• Slightly Higher: On gains in my index hedges and emerging markets shorts

• Disclosed Trades: None

• Market Exposure: 25% Net Long