Stocks Slightly Lower into Final Hour on Earnings Outlook Concerns, Emerging Markets Debt Angst, Oil Decline, Biotech/Pharma Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Slightly Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 15.44 +3.07%

• Euro/Yen Carry Return Index 142.06 +.47%

• Emerging Markets Currency Volatility(VXY) 11.25 +.27%

• S&P 500 Implied Correlation 61.55 +3.0%

• ISE Sentiment Index 73.0 -39.67%

• Total Put/Call 1.03 +15.73%

• NYSE Arms .99 -21.79% 

Credit Investor Angst:

• North American Investment Grade CDS Index 80.75 -.45%

• America Energy Sector High-Yield CDS Index 1,057.0 -.22%

• European Financial Sector CDS Index 74.51 -.98%

• Western Europe Sovereign Debt CDS Index 19.81 -5.94%

• Asia Pacific Sovereign Debt CDS Index 76.89 +2.56%

• Emerging Market CDS Index 334.79 +1.26%
  

• iBoxx Offshore RMB China Corporates High Yield Index 121.66 +.11%

• 2-Year Swap Spread 10.75 -1.0 basis point

• TED Spread 30.75 -1.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -24.5 -.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 72.67 -.34%
• 3-Month T-Bill Yield .01% +2.0 basis points

• Yield Curve 144.0 +1.0 basis point

• China Import Iron Ore Spot $52.93/Metric Tonne -.69%

• Citi US Economic Surprise Index -7.20 +4.1 points

• Citi Eurozone Economic Surprise Index 7.5 +.7 point

• Citi Emerging Markets Economic Surprise Index -17.40 +.7 point

• 10-Year TIPS Spread 1.48 +2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 6.75 +.25

Overseas Futures:

• Nikkei 225 Futures: Indicating +67 open in Japan 
• China A50 Futures: Indicating -9 open in China

• DAX Futures: Indicating +9 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long