Stocks Slightly Lower into Afternoon on Earnings Outlook Concerns, Technical Selling, Profit-Taking, Financial/Road & Rail Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Slightly Lower
  

• Sector Performance: Mixed
  

• Volume: Slightly Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 14.26 -2.4%

• Euro/Yen Carry Return Index 138.81 -.07%

• Emerging Markets Currency Volatility(VXY) 10.82 -.37%

• S&P 500 Implied Correlation 57.25 -2.12%

• ISE Sentiment Index 82.0 -38.81%

• Total Put/Call .87 +2.35%

• NYSE Arms 1.07 -5.11% 

Credit Investor Angst:

• North American Investment Grade CDS Index 78.40 -.26%

• America Energy Sector High-Yield CDS Index 1,131.0 +.557%

• European Financial Sector CDS Index 69.32 -.73%

• Western Europe Sovereign Debt CDS Index 19.06 +2.53%

• Asia Pacific Sovereign Debt CDS Index 72.48 -2.61%

• Emerging Market CDS Index 324.99 -.74%
  

• iBoxx Offshore RMB China Corporate High Yield Index 122.65 +.18%

• 2-Year Swap Spread 11.25 -.75 basis point

• TED Spread 26.5 -1.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -29.25 +1.25 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 71.89 +.28%
• 3-Month T-Bill Yield .07% +1.0 basis point

• Yield Curve 142.0 -3.0 basis points

• China Import Iron Ore Spot $49.83/Metric Tonne +.36%

• Citi US Economic Surprise Index -12.7 -2.2 points

• Citi Eurozone Economic Surprise Index 32.7 +7.0 points

• Citi Emerging Markets Economic Surprise Index -10.50 +2.0 points

• 10-Year TIPS Spread 1.53 +1.0 basis point
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 4.07 -.24

Overseas Futures:

• Nikkei 225 Futures: Indicating -168 open in Japan 
• China A50 Futures: Indicating -63 open in China

• DAX Futures: Indicating -3 open in Germany

Portfolio: 

• Slightly Higher: On gains in my medical/retail sector longs

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

• Market Exposure: Moved to 25% Net Long