Stocks Falling into Final Hour on Global Growth Fears, Earnings Outlook Concerns, European/US High-Yield Debt Angst, Tech/Defense 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) 12.71 +3.76%

• Euro/Yen Carry Return Index 141.68 +.80%

• Emerging Markets Currency Volatility(VXY) 8.20 -1.20%

• S&P 500 Implied Correlation 59.93 +1.70%

• ISE Sentiment Index 78.0 -45.83%

• Total Put/Call .93 +2.20%

• NYSE Arms .92 -18.27% 

Credit Investor Angst:

• North American Investment Grade CDS Index 66.77 +1.38%

• America Energy Sector High-Yield CDS Index 1,530.0 +1.01%

• European Financial Sector CDS Index 67.76 +1.95%

• Western Europe Sovereign Debt CDS Index 21.11 +3.05%

• Asia Pacific Sovereign Debt CDS Index 58.35 +1.97%

• Emerging Market CDS Index 299.92 -.49%
  

• iBoxx Offshore RMB China Corporates High Yield Index 120.46 +.09%

• 2-Year Swap Spread 25.75 unch.

• TED Spread 27.5 -.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -20.5 +.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .03% unch

• Yield Curve 166.0 -1.0 basis point

• China Import Iron Ore Spot $52.10/Metric Tonne -.55%

• Citi US Economic Surprise Index -13.2 +1.6 points

• Citi Eurozone Economic Surprise Index 9.2 +3.6 points

• Citi Emerging Markets Economic Surprise Index -9.8 +.3 point

• 10-Year TIPS Spread 1.83 unch.
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 5.19 -.37

Overseas Futures:

• Nikkei 225 Futures: Indicating -142 open in Japan 
• China A50 Futures: Indicating -430 open in China

• DAX Futures: Indicating -25 open in Germany

Portfolio: 

• Slightly Lower: On losses in my tech/biotech/retail sector longs

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 25% Net Long