Stocks Falling Substantially into Final Hour on China-Bubble Bursting Fears, Surging European/Emerging Markets/US High-Yield Debt Angst, Emerging Market Currency Worries, Energy/Financial Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Every Sector Declining
  

• Volume: Heavy

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 35.11 +25.26%

• Euro/Yen Carry Return Index 143.82 -.96%

• Emerging Markets Currency Volatility(VXY) 12.35 +8.33%

• S&P 500 Implied Correlation 57.99 +.09%

• ISE Sentiment Index 43.0 -28.33%

• Total Put/Call 1.18 -29.76%

• NYSE Arms 1.49 -48.54% 

Credit Investor Angst:

• North American Investment Grade CDS Index 86.96 +5.31%

• America Energy Sector High-Yield CDS Index 1,878.0 +.4%

• European Financial Sector CDS Index 89.57 +6.85%

• Western Europe Sovereign Debt CDS Index 24.67 +4.29%

• Asia Pacific Sovereign Debt CDS Index 85.85 +5.69%

• Emerging Market CDS Index 388.40 +9.41%
  

• iBoxx Offshore RMB China Corporates High Yield Index 118.14 -.31%

• 2-Year Swap Spread 21.25 -1.5 basis points

• TED Spread 30.25 -1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -18.0 unch.

Economic Gauges:

• 3-Month T-Bill Yield .02% unch.

• Yield Curve 145.0 +2.0 basis points

• China Import Iron Ore Spot $53.28/Metric Tonne -5.03%

• Citi US Economic Surprise Index -18.6 -.4 point

• Citi Eurozone Economic Surprise Index 15.6 -1.3 points

• Citi Emerging Markets Economic Surprise Index -8.5 +.1 point

• 10-Year TIPS Spread 1.5 unch.
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 4.49 +.47

Overseas Futures:

• Nikkei 225 Futures: Indicating -465 open in Japan 
• China A50 Futures: Indicating -469 open in China

• DAX Futures: Indicating +38 open in Germany

Portfolio: 

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my (EEM) short, then added them back

• Market Exposure: 25% Net Long