Stocks Falling into Final Hour on China Bubble-Bursting Fears, Greece Debt Deal Concerns, Surging European/Emerging Markets/US High-Yield Debt Angst, Tech/Commodity Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 18.0 +7.21%

• Euro/Yen Carry Return Index 141.49 -.81%

• Emerging Markets Currency Volatility(VXY) 8.94 +1.71%

• S&P 500 Implied Correlation 62.03 +1.19%

• ISE Sentiment Index 106.0 +70.9%

• Total Put/Call 1.01 -.98%

• NYSE Arms 1.86 +65.36% 

Credit Investor Angst:

• North American Investment Grade CDS Index 71.52 +4.86%

• America Energy Sector High-Yield CDS Index 1,246.0 +.16%

• European Financial Sector CDS Index 97.39 +6.27%

• Western Europe Sovereign Debt CDS Index 29.57 +12.41%

• Asia Pacific Sovereign Debt CDS Index 60.23 +1.50%

• Emerging Market CDS Index 314.01 +4.07%
  

• iBoxx Offshore RMB China Corporates High Yield Index 120.92 +.15%

• 2-Year Swap Spread 26.50 +.5 basis point

• TED Spread 28.5 +.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -22.75 -2.0 basis points

Economic Gauges:

• 3-Month T-Bill Yield .00% unch.

• Yield Curve 170.0 -5.0 basis points

• China Import Iron Ore Spot $52.28/Metric Tonne -5.39%

• Citi US Economic Surprise Index -23.6 +1.5 points

• Citi Eurozone Economic Surprise Index -6.5 -2.1 points

• Citi Emerging Markets Economic Surprise Index -18.20 +.4 point

• 10-Year TIPS Spread 1.89 -3.0 basis points

Overseas Futures:

• Nikkei 225 Futures: Indicating +138 open in Japan 

• China A50 Futures: Indicating -188 open in China

• DAX Futures: Indicating -78 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 25% Net Long