Stocks Reversing Lower into Afternoon on China Bubble-Bursting Fears, Emerging Markets Currency Concerns, Global Growth Worries, Tech/Metals & Mining Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 13.81 +6.07%

• Euro/Yen Carry Return Index 143.27 -.46%

• Emerging Markets Currency Volatility(VXY) 10.69 -.47%

• S&P 500 Implied Correlation 55.64 +1.57%

• ISE Sentiment Index 101.0 +134.88%

• Total Put/Call .91 +3.41%

• NYSE Arms 1.08 +38.56% 

Credit Investor Angst:

• North American Investment Grade CDS Index 77.97 +1.84%

• America Energy Sector High-Yield CDS Index 1,908.0 +.55%

• European Financial Sector CDS Index 75.75 +.19%

• Western Europe Sovereign Debt CDS Index 22.48 +.56%

• Asia Pacific Sovereign Debt CDS Index 70.86 -.42%

• Emerging Market CDS Index 344.80 +.32%
  

• iBoxx Offshore RMB China Corporates High Yield Index 119.05 -.35%

• 2-Year Swap Spread 23.75 -.25 basis point

• TED Spread 25.75 +2.0 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -20.0 -.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .07% unch.

• Yield Curve 147.0 +2.0 basis points

• China Import Iron Ore Spot $56.92/Metric Tonne +.46%

• Citi US Economic Surprise Index -8.2 +1.0 point

• Citi Eurozone Economic Surprise Index 10.8 +.6 point

• Citi Emerging Markets Economic Surprise Index -6.2 -1.8 points

• 10-Year TIPS Spread 1.60 unch.
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 3.54 -.03

Overseas Futures:

• Nikkei 225 Futures: Indicating -84 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 tech/biotech sector longs

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

• Market Exposure: Moved to 25% Net Long