Stocks Modestly Lower into Afternoon on China Bubble-Bursting Fears, Fed Uncertainty, Earnings Worries, Utility/Pharma Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 27.21 +4.25%

• Euro/Yen Carry Return Index 141.90 -.15%

• Emerging Markets Currency Volatility(VXY) 11.56 -.94%

• S&P 500 Implied Correlation 62.06 +9.41%

• ISE Sentiment Index 86.0 unch.

• Total Put/Call 1.23 +3.36%

• NYSE Arms .92 +165.13% 

Credit Investor Angst:

• North American Investment Grade CDS Index 79.71 +.97%

• America Energy Sector High-Yield CDS Index 1,872.0 -2.51%

• European Financial Sector CDS Index 81.26 +2.38%

• Western Europe Sovereign Debt CDS Index 22.34 -2.66%

• Asia Pacific Sovereign Debt CDS Index 79.70 +1.55%

• Emerging Market CDS Index 344.58 +.55%
  

• iBoxx Offshore RMB China Corporates High Yield Index 116.79 -.36%

• 2-Year Swap Spread 15.25 +.75 basis point

• TED Spread 27.25 -.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -21.25 -.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .06% +1.0 basis point

• Yield Curve 146.0 -3.0 basis points

• China Import Iron Ore Spot $56.04/Metric Tonne +3.91%

• Citi US Economic Surprise Index -7.5 -4.8 points

• Citi Eurozone Economic Surprise Index 14.6 -3.5 points

• Citi Emerging Markets Economic Surprise Index -9.6 -1.7 points

• 10-Year TIPS Spread 1.61 +2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 5.61 -.31

Overseas Futures:

• Nikkei 225 Futures: Indicating -1 open in Japan 
• China A50 Futures: Indicating -302 open in China

• DAX Futures: Indicating -8 open in Germany

Portfolio: 

• Slightly Higher: On gains in my retail sector longs and emerging markets shorts

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

• Market Exposure: Moved to 25% Net Long