Stocks Reversing Lower into Final Hour on China Bubble-Bursting Fears, Emerging Markets Currency Worries, Oil Decline, Commodity/Gaming 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) 22.12 -1.43%

• Euro/Yen Carry Return Index 140.41 +.51%

• Emerging Markets Currency Volatility(VXY) 12.62 +3.19%

• S&P 500 Implied Correlation 62.63 -1.66%

• ISE Sentiment Index 48.0 -22.58%

• Total Put/Call 1.0 -13.79%

• NYSE Arms 1.52 -15.36% 

Credit Investor Angst:

• North American Investment Grade CDS Index 83.66 +.50%

• America Energy Sector High-Yield CDS Index 977.0 +3.07%

• European Financial Sector CDS Index 87.72 -1.30%

• Western Europe Sovereign Debt CDS Index 21.08 -.12%

• Asia Pacific Sovereign Debt CDS Index 82.31 +.94%

• Emerging Market CDS Index 370.86 +2.27%
  

• iBoxx Offshore RMB China Corporates High Yield Index 119.68 +.09%

• 2-Year Swap Spread 9.75 -2.0 basis points

• TED Spread 33.0 +1.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -24.5 -.5 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.27 -.62%
• 3-Month T-Bill Yield .01% +2.0 basis points

• Yield Curve 145.0 -1.0 basis point

• China Import Iron Ore Spot $55.30/Metric Tonne -1.62%

• Citi US Economic Surprise Index -28.2 -.1 point

• Citi Eurozone Economic Surprise Index 14.5 +2.1 points

• Citi Emerging Markets Economic Surprise Index -23.4 -1.8 point

• 10-Year TIPS Spread 1.53 +1.0 basis point
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 5.75 +.71

Overseas Futures:

• Nikkei 225 Futures: Indicating -415 open in Japan 
• China A50 Futures: Indicating +96 open in China

• DAX Futures: Indicating -1 open in Germany

Portfolio: 

• Higher: On gains in my tech sector longs, index hedges and emerging markets shorts

• Disclosed Trades: None

• Market Exposure: 25% Net Long