Stocks Falling Substantially into Final Hour on China Bubble-Bursting Fears, Emerging Markets Currency Worries, Global Growth Concerns, Tech/Biotech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Around Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 18.13 +18.89%

• Euro/Yen Carry Return Index 144.36 +.36%

• Emerging Markets Currency Volatility(VXY) 11.31 +4.63%

• S&P 500 Implied Correlation 56.46 -1.91%

• ISE Sentiment Index 71.0 -2.74%

• Total Put/Call 1.25 +15.74%

• NYSE Arms 1.12 -25.74% 

Credit Investor Angst:

• North American Investment Grade CDS Index 80.05 +1.08%

• America Energy Sector High-Yield CDS Index 1,853.0 -3.56%

• European Financial Sector CDS Index 80.14 +2.05%

• Western Europe Sovereign Debt CDS Index 22.59 +2.29%

• Asia Pacific Sovereign Debt CDS Index 77.30 +3.49%

• Emerging Market CDS Index 356.40 +2.12%
  

• iBoxx Offshore RMB China Corporates High Yield Index 118.94 -.08%

• 2-Year Swap Spread 22.75 -.75 basis point

• TED Spread 29.25 +2.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -18.25 unch.

Economic Gauges:

• 3-Month T-Bill Yield .02% -2.0 basis points

• Yield Curve 141.0 -6.0 basis points

• China Import Iron Ore Spot $55.84/Metric Tonne -1.01%

• Citi US Economic Surprise Index -17.1 -1.3 points

• Citi Eurozone Economic Surprise Index 10.1 -.3 point

• Citi Emerging Markets Economic Surprise Index -5.4 +.1 point

• 10-Year TIPS Spread 1.57 -1.0 basis point
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 4.55 +.55

Overseas Futures:

• Nikkei 225 Futures: Indicating -353 open in Japan 
• China A50 Futures: Indicating -163 open in China

• DAX Futures: Indicating -86 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 25% Net Long