Stocks Falling into Afternoon on Fed Rate Hike Worries, China Bubble-Bursting Fears, Rising European/Emerging Markets/US High-Yield Debt Angst, Energy/Biotech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Slightly Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 14.36 +4.38%

• Euro/Yen Carry Return Index 142.30 -.03%

• Emerging Markets Currency Volatility(VXY) 9.36 unch.

• S&P 500 Implied Correlation 55.95 -.36%

• ISE Sentiment Index 56.0 -9.68%

• Total Put/Call 1.21 -5.47%

• NYSE Arms 1.65 +129.42% 

Credit Investor Angst:

• North American Investment Grade CDS Index 75.85 +1.97%

• America Energy Sector High-Yield CDS Index 1,837.0 +1.27%

• European Financial Sector CDS Index 76.58 +2.33%

• Western Europe Sovereign Debt CDS Index 22.48 +1.79%

• Asia Pacific Sovereign Debt CDS Index 65.25 +.61%

• Emerging Market CDS Index 336.88 +.55%
  

• iBoxx Offshore RMB China Corporates High Yield Index 120.99 -.10%

• 2-Year Swap Spread 24.75 -.75 basis point

• TED Spread 28.0 +3.5 basis points

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

Economic Gauges:

• 3-Month T-Bill Yield .06% +3.0 basis points

• Yield Curve 145.0 -8.0 basis points

• China Import Iron Ore Spot $56.40/Metric Tonne n/a

• Citi US Economic Surprise Index -8.2 -.6 point

• Citi Eurozone Economic Surprise Index 15.0 -6.5 points

• Citi Emerging Markets Economic Surprise Index -3.5 +2.0 points

• 10-Year TIPS Spread 1.66 -1.0 basis point
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 4.62 -.06

Overseas Futures:

• Nikkei 225 Futures: Indicating -124 open in Japan 
• China A50 Futures: Indicating -161 open in China

• DAX Futures: Indicating +2 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long