Stocks Reversing Lower into Final Hour on China Bubble-Bursting Fears, Rising European/Emerging Markets/US High-Yield Debt Angst, Technical Selling, Tech/Homebuilding Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 27.38 -.90%

• Euro/Yen Carry Return Index 140.72 +.06%

• Emerging Markets Currency Volatility(VXY) 12.96 +.15%

• S&P 500 Implied Correlation 66.38 -.42%

• ISE Sentiment Index 77.0 +45.28%

• Total Put/Call 1.41 -1.40%

• NYSE Arms .75 -66.73% 

Credit Investor Angst:

• North American Investment Grade CDS Index 92.93 +.42%

• America Energy Sector High-Yield CDS Index 1,098.0 +.02%

• European Financial Sector CDS Index 96.75 +.12%

• Western Europe Sovereign Debt CDS Index 22.22 +3.88%

• Asia Pacific Sovereign Debt CDS Index 92.56 +1.07%

• Emerging Market CDS Index 404.08 +1.28%
  

• iBoxx Offshore RMB China Corporates High Yield Index 119.60 -.18%

• 2-Year Swap Spread 10.5 +.5 basis point

• TED Spread 32.0 -1.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -25.75 -4.75 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.31 +.27%
• 3-Month T-Bill Yield .00 +1.0 basis point

• Yield Curve 141.0 -2.0 basis points

• China Import Iron Ore Spot $56.05/Metric Tonne -1.42%

• Citi US Economic Surprise Index -20.40 +3.4 points

• Citi Eurozone Economic Surprise Index 35.80 +14.6 points

• Citi Emerging Markets Economic Surprise Index -25.6 -.3 point

• 10-Year TIPS Spread 1.40 +1.0 basis point
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 5.59 +.17

Overseas Futures:

• Nikkei 225 Futures: Indicating +245 open in Japan 
• China A50 Futures: Indicating -55 open in China

• DAX Futures: Indicating -3 open in Germany

Portfolio: 

• Slightly Lower: On losses in my biotech/tech sector longs and emerging markets shorts

• Disclosed Trades: None

• Market Exposure: 25% Net Long