Stocks Slightly Lower on Fed Rate Hike Concerns, Emerging Markets/US High-Yield Debt Angst, Oil Decline, Commodity/Homebuilding Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Slightly Above Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 11.94 -1.4%

• Euro/Yen Carry Return Index 140.61 -.29%

• Emerging Markets Currency Volatility(VXY) 8.25 unch.

• S&P 500 Implied Correlation t58.56 -2.30%

• ISE Sentiment Index 83.0 -27.83%

• Total Put/Call .79 -10.23%

• NYSE Arms 1.38 +15.75% 

Credit Investor Angst:

• North American Investment Grade CDS Index 65.21 -.24%

• America Energy Sector High-Yield CDS Index 1,479.0 +15.9%

• European Financial Sector CDS Index 68.42 -3.11%

• Western Europe Sovereign Debt CDS Index 21.19 -1.83%

• Asia Pacific Sovereign Debt CDS Index 57.72 -2.38%

• Emerging Market CDS Index 298.63 +.92%
  

• iBoxx Offshore RMB China Corporates High Yield Index 120.18 +.20%

• 2-Year Swap Spread 26.0 +1.25 basis points

• TED Spread 27.25 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -21.25 -.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .02% +1.0 basis point

• Yield Curve 168.0 -1.0 basis point

• China Import Iron Ore Spot $50.66/Metric Tonne n/a

• Citi US Economic Surprise Index -20.8 n/a

• Citi Eurozone Economic Surprise Index -.3 n/a

• Citi Emerging Markets Economic Surprise Index -10.30 n/a

• 10-Year TIPS Spread 1.84 -1.0 basis point
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 5.83 -.70

Overseas Futures:

• Nikkei 225 Futures: Indicating +75 open in Japan 
• China A50 Futures: Indicating -230 open in China

• DAX Futures: Indicating + open in Germany

Portfolio: 

• Slightly Higher: On gains in my tech sector longs and index hedges

• Disclosed Trades: None

• Market Exposure: 50% Net Long