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

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Every Sector Declining
  

• Volume: Slightly Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 19.24 +19.38%

• Euro/Yen Carry Return Index 13.48 -1.05%

• Emerging Markets Currency Volatility(VXY) 9.44 +1.61%

• S&P 500 Implied Correlation 62.01 +5.84%

• ISE Sentiment Index 73.0 +19.7%

• Total Put/Call 1.40 +12.0%

• NYSE Arms 2.01 +138.72% 

Credit Investor Angst:

• North American Investment Grade CDS Index 72.99 +2.86%

• America Energy Sector High-Yield CDS Index 1,269.0 +.24%

• European Financial Sector CDS Index 98.58 -1.93%

• Western Europe Sovereign Debt CDS Index 32.87 +3.20%

• Asia Pacific Sovereign Debt CDS Index 64.35 +4.08%

• Emerging Market CDS Index 319.0 +.91%
  

• iBoxx Offshore RMB China Corporates High Yield Index n/a

• 2-Year Swap Spread 25.50 unch.

• TED Spread 27.5 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -22.5 +.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 166.0 -1.0 basis point

• China Import Iron Ore Spot $44.59/Metric Tonne -10.10%

• Citi US Economic Surprise Index -20.7 +.8 point

• Citi Eurozone Economic Surprise Index -6.4 +.3 point

• Citi Emerging Markets Economic Surprise Index -18.0 +.6 point

• 10-Year TIPS Spread 1.85 -4.0 basis points

Overseas Futures:

• Nikkei 225 Futures: Indicating -422 open in Japan 

• China A50 Futures: Indicating -1,044 open in China

• DAX Futures: Indicating -41 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 25% Net Long