Stocks Falling Substantially into Final Hour on China Bubble-Bursting Fears, Surging European/Emerging Markets/US High-Yield Debt Angst, Fed Rate-Hike Worries, Biotech/Commodity Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Every Sector Declining
  

• Volume: Above Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 27.67 +17.15%

• Euro/Yen Carry Return Index 140.50 -.33%

• Emerging Markets Currency Volatility(VXY) 12.90 +.08%

• S&P 500 Implied Correlation 66.85 +3.64%

• ISE Sentiment Index 39.0 -11.0%

• Total Put/Call 1.41 +9.30%

• NYSE Arms 2.49 +143.87% 

Credit Investor Angst:

• North American Investment Grade CDS Index 92.63 +5.42%

• America Energy Sector High-Yield CDS Index 1,101 +6.44%

• European Financial Sector CDS Index 96.63 +7.35%

• Western Europe Sovereign Debt CDS Index 21.39 -.63%

• Asia Pacific Sovereign Debt CDS Index 90.47 +4.79%

• Emerging Market CDS Index 400.06 +4.86%
  

• iBoxx Offshore RMB China Corporates High Yield Index 119.81 +.11%

• 2-Year Swap Spread 9.75 -.25 basis point

• TED Spread 33.75 -1.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -21.0 +1.25 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.19 -.53%
• 3-Month T-Bill Yield -.01% +1.0 basis point

• Yield Curve 143.0 -4.0 basis points

• China Import Iron Ore Spot $56.86/Metric Tonne -.21%

• Citi US Economic Surprise Index -23.80 +1.2 points

• Citi Eurozone Economic Surprise Index 21.20 +5.3 points

• Citi Emerging Markets Economic Surprise Index -25.3 -.6 point

• 10-Year TIPS Spread 1.39 -8.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 5.42 -.28

Overseas Futures:

• Nikkei 225 Futures: Indicating -220 open in Japan 
• China A50 Futures: Indicating -232 open in China

• DAX Futures: Indicating -42 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 25% Net Long