Stocks Lower into Final Hour on Global Growth Fears, Surging European/Emerging Markets/US High-Yield Debt Angst, Earnings Worries, Transport/Healthcare Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 23.0 +3.89%

• Euro/Yen Carry Return Index 140.62 +.1%

• Emerging Markets Currency Volatility(VXY) 13.17 +3.86%

• S&P 500 Implied Correlation 64.13 +2.94%

• ISE Sentiment Index 67.0 +26.42%

• Total Put/Call 1.02 unch.

• NYSE Arms .65 -59.41% 

Credit Investor Angst:

• North American Investment Grade CDS Index 86.19 +2.52%

• America Energy Sector High-Yield CDS Index 995.0 +1.72%

• European Financial Sector CDS Index 91.71 +4.55%

• Western Europe Sovereign Debt CDS Index 21.21 +.62%

• Asia Pacific Sovereign Debt CDS Index 86.86 +5.27%

• Emerging Market CDS Index 376.06 +.58%
  

• iBoxx Offshore RMB China Corporates High Yield Index 119.68 +.01%

• 2-Year Swap Spread 10.5 +.75 basis point

• TED Spread 32.5 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -24.25 +.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.44 +.35%
• 3-Month T-Bill Yield .00% -1.0 basis point

• Yield Curve 144.0 -1.0 basis point

• China Import Iron Ore Spot $55.30/Metric Tonne n/a

• Citi US Economic Surprise Index -27.5 +.7 point

• Citi Eurozone Economic Surprise Index 16.9 +2.4 points

• Citi Emerging Markets Economic Surprise Index -24.5 -1.1 point

• 10-Year TIPS Spread 1.49 -4.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 5.62 -.13

Overseas Futures:

• Nikkei 225 Futures: Indicating -99 open in Japan 
• China A50 Futures: Indicating -36 open in China

• DAX Futures: Indicating +111 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

• Market Exposure: Moved to 50% Net Long