Stocks Falling into Afternoon on Fed Rate Hike Fears, European/US High-Yield Debt Angst, Earnings Outlook Worries, Tech/Telecom Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Slightly Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 16.15 -2.24%

• Euro/Yen Carry Return Index 137.64 -.53%

• Emerging Markets Currency Volatility(VXY) 10.83 -.37%

• S&P 500 Implied Correlation 55.93 -1.51%

• ISE Sentiment Index 89.0 +5.95%

• Total Put/Call 1.03 -7.21%

• NYSE Arms 1.34 +17.78% 

Credit Investor Angst:

• North American Investment Grade CDS Index 81.36 +.78%

• America Energy Sector High-Yield CDS Index 1,119.0 -1.69%

• European Financial Sector CDS Index 71.74 +1.21%

• Western Europe Sovereign Debt CDS Index 20.38 +5.51%

• Asia Pacific Sovereign Debt CDS Index 70.15 -.77%

• Emerging Market CDS Index 322.51 -1.49%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.66 +.18%

• 2-Year Swap Spread 9.25 +.25 basis point

• TED Spread 26.5 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -40.5 -.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.92 -.01%
• 3-Month T-Bill Yield .13% +5.0 basis points

• Yield Curve 146.0 -1.0 basis point

• China Import Iron Ore Spot $48.24/Metric Tonne n/a

• Citi US Economic Surprise Index .9 +.3 point

• Citi Eurozone Economic Surprise Index 23.7 +.3 point

• Citi Emerging Markets Economic Surprise Index -4.1 -.5 point

• 10-Year TIPS Spread 1.60 -1.0 basis point
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 2.8 -.11

Overseas Futures:

• Nikkei 225 Futures: Indicating -7 open in Japan 
• China A50 Futures: Indicating -133 open in China

• DAX Futures: Indicating +17 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 25% Net Long