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

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Slightly Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 14.01 +14.55%

• Euro/Yen Carry Return Index 144.14 +.50%

• Emerging Markets Currency Volatility(VXY) 10.73 +15.4%

• S&P 500 Implied Correlation 55.05 +2.59%

• ISE Sentiment Index 54.0 -34.94%

• Total Put/Call 1.10 +96.43%

• NYSE Arms 1.50 +256.41% 

Credit Investor Angst:

• North American Investment Grade CDS Index 75.55 +2.58%

• America Energy Sector High-Yield CDS Index 1,852.0 -1.76%

• European Financial Sector CDS Index 77.16 +4.12%

• Western Europe Sovereign Debt CDS Index 21.79 -3.11%

• Asia Pacific Sovereign Debt CDS Index 68.59 +6.10%

• Emerging Market CDS Index 335.94 +2.02%
  

• iBoxx Offshore RMB China Corporates High Yield Index 121.09 -.12%

• 2-Year Swap Spread 25.0 -.25 basis point

• TED Spread 20.75 -4.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -19.25 unch.

Economic Gauges:

• 3-Month T-Bill Yield .10% +3.0 basis points

• Yield Curve 146.0 -5.0 basis points

• China Import Iron Ore Spot $56.22/Metric Tonne -.32%

• Citi US Economic Surprise Index -5.94 +.5 point

• Citi Eurozone Economic Surprise Index 11.9 -4.0 points

• Citi Emerging Markets Economic Surprise Index -4.8 +1.0 point

• 10-Year TIPS Spread 1.66 -4.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 4.29 -.10

Overseas Futures:

• Nikkei 225 Futures: Indicating -85 open in Japan 
• China A50 Futures: Indicating -168 open in China

• DAX Futures: Indicating +3 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long