Stocks Falling into Final Hour on China Bubble-Bursting Fears, Fed Rate Hike Worries, Rising Emering Markets/US High-Yield Debt Angst, Biotech/Retail Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Slightly Above Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 13.99 +11.83%

• Euro/Yen Carry Return Index 142.34 +.06%

• Emerging Markets Currency Volatility(VXY) 9.49 unch.

• S&P 500 Implied Correlation 56.11 +.23%

• ISE Sentiment Index 60.0 -35.48%

• Total Put/Call 1.21 +24.74%

• NYSE Arms .62 -40.46% 

Credit Investor Angst:

• North American Investment Grade CDS Index 74.38 +3.22%

• America Energy Sector High-Yield CDS Index 1,7867.0 -.01%

• European Financial Sector CDS Index 74.64 +1.66%

• Western Europe Sovereign Debt CDS Index 22.09 +.02%

• Asia Pacific Sovereign Debt CDS Index 64.55 +1.28%

• Emerging Market CDS Index 336.85 +3.91%
  

• iBoxx Offshore RMB China Corporates High Yield Index 121.10 +.10%

• 2-Year Swap Spread 25.5 +.75 basis point

• TED Spread 24.5 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -19.75 +.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .03% -5.0 basis points

• Yield Curve 153.0 -1.0 basis point

• China Import Iron Ore Spot $56.40/Metric Tonne -.67%

• Citi US Economic Surprise Index -7.6 +.6 point

• Citi Eurozone Economic Surprise Index 21.5 +3.5 points

• Citi Emerging Markets Economic Surprise Index -5.5 -.5 point

• 10-Year TIPS Spread 1.67 -3.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 4.68 -.03

Overseas Futures:

• Nikkei 225 Futures: Indicating -41 open in Japan 
• China A50 Futures: Indicating -200 open in China

• DAX Futures: Indicating -18 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 25% Net Long