Stocks Reversing Slightly Lower into Afternoon on Global Growth Fears, China Bubble-Bursting Worries, Commodity Declines, Energy/Tech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Mixed
  

• Volume: Slightly Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 12.32 +1.57%

• Euro/Yen Carry Return Index 142.44 +.49%

• Emerging Markets Currency Volatility(VXY) 9.40 +1.95%

• S&P 500 Implied Correlation 57.98 +1.13%

• ISE Sentiment Index 79.0 -8.14%

• Total Put/Call .99 +32.0%

• NYSE Arms 1.75 +30.86% 

Credit Investor Angst:

• North American Investment Grade CDS Index 70.14 -1.54%

• America Energy Sector High-Yield CDS Index 1,582.0 +.64%

• European Financial Sector CDS Index 73.67 -1.77%

• Western Europe Sovereign Debt CDS Index 22.39 +1.87%

• Asia Pacific Sovereign Debt CDS Index 62.94 +.80%

• Emerging Market CDS Index 316.90 +1.23%
  

• iBoxx Offshore RMB China Corporates High Yield Index 121.08 +.11%

• 2-Year Swap Spread 23.25 -.25 basis point

• TED Spread 24.0 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -19.5 +1.25 basis points

Economic Gauges:

• 3-Month T-Bill Yield .06% unch.

• Yield Curve 153.0 -1.0 basis point

• China Import Iron Ore Spot $53.41/Metric Tonne -4.01%

• Citi US Economic Surprise Index -15.4 +.9 point

• Citi Eurozone Economic Surprise Index 7.1 +3.9 points

• Citi Emerging Markets Economic Surprise Index -11.4 +1.4 points

• 10-Year TIPS Spread 1.75 -1.0 basis point

• # of Months to 1st Fed Rate Hike(Morgan Stanley) 4.76 -.52

Overseas Futures:

• Nikkei 225 Futures: Indicating -35 open in Japan 

• China A50 Futures: Indicating -309 open in China

• DAX Futures: Indicating +2 open in Germany

Portfolio: 

• Slightly Higher: On gains in my medical/retail/biotech sector longs

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

• Market Exposure: Moved to 25% Net Long