Stocks Falling Substantially into Afternoon on China Bubble-Bursting Fears, Global Growth Worries, Emerging Markets Debt Angst, Financial/Technology Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Every Sector Declining
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 31.61 +11.19%

• Euro/Yen Carry Return Index 141.43 -.42%

• Emerging Markets Currency Volatility(VXY) 11.67 +.17%

• S&P 500 Implied Correlation 64.37 -.19%

• ISE Sentiment Index 59.0 -45.4%

• Total Put/Call 1.28 +9.4%

• NYSE Arms 2.65 +124.36% 

Credit Investor Angst:

• North American Investment Grade CDS Index 84.05 +2.76%

• America Energy Sector High-Yield CDS Index 1,836.0 -1.77%

• European Financial Sector CDS Index 85.38 +5.17%

• Western Europe Sovereign Debt CDS Index 22.16 -.40%

• Asia Pacific Sovereign Debt CDS Index 83.83 +3.88%

• Emerging Market CDS Index 358.04 +3.50%
  

• iBoxx Offshore RMB China Corporates High Yield Index 116.73 -.20%

• 2-Year Swap Spread 13.25 -2.25 basis points

• TED Spread 27.25 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -22.0 +.25 basis point

Economic Gauges:

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

• Yield Curve 147.0 unch.

• China Import Iron Ore Spot $56.59/Metric Tonne +.68%

• Citi US Economic Surprise Index -12.6 -4.4 points

• Citi Eurozone Economic Surprise Index 24.8 +9.6 points

• Citi Emerging Markets Economic Surprise Index -18.6 -5.0 points

• 10-Year TIPS Spread 1.58 -5.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 3.83 -.45

Overseas Futures:

• Nikkei 225 Futures: Indicating -335 open in Japan 
• China A50 Futures: Indicating -970 open in China

• DAX Futures: Indicating -61 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 25% Net Long