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

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 22.06 -6.01%

• Euro/Yen Carry Return Index 141.02 +.14%

• Emerging Markets Currency Volatility(VXY) 12.95 -.84%

• S&P 500 Implied Correlation 62.81 -3.74%

• ISE Sentiment Index 51.0 -26.09%

• Total Put/Call 1.21 +18.63%

• NYSE Arms 1.17 +23.07% 

Credit Investor Angst:

• North American Investment Grade CDS Index 87.78 +2.06%

• America Energy Sector High-Yield CDS Index 1,033.0 +2.44%

• European Financial Sector CDS Index 90.01 -1.85%

• Western Europe Sovereign Debt CDS Index 21.53 +1.51%

• Asia Pacific Sovereign Debt CDS Index 86.23 +.57%

• Emerging Market CDS Index 380.87 +3.0%
  

• iBoxx Offshore RMB China Corporates High Yield Index 119.68 unch.

• 2-Year Swap Spread 10.0 -.5 basis point

• TED Spread 32.5 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -22.5 +1.75 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.53 +.02%
• 3-Month T-Bill Yield -.02% -2.0 basis points

• Yield Curve 147.0 +3.0 basis points

• China Import Iron Ore Spot $56.98/Metric Tonne +3.04%

• Citi US Economic Surprise Index -25.0 +2.5 points

• Citi Eurozone Economic Surprise Index 15.9 -1.0 point

• Citi Emerging Markets Economic Surprise Index -24.7 -.2 point

• 10-Year TIPS Spread 1.47 -2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 5.70 +.08

Overseas Futures:

• Nikkei 225 Futures: Indicating +71 open in Japan 
• China A50 Futures: Indicating -15 open in China

• DAX Futures: Indicating -24 open in Germany

Portfolio: 

• Slightly Lower: On losses in my biotech/medical sector longs

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

• Market Exposure: Moved to 25% Net Long