Stocks Falling into Final Hour on Global Growth Fears, European/Emerging Markets/US High-Yield Debt Angst, Emerging Markets Currency Worries, Tech/Retail Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 19.82 +7.89%

• Euro/Yen Carry Return Index 137.68 -.61%

• Emerging Markets Currency Volatility(VXY) 10.70 +1.33%

• S&P 500 Implied Correlation 59.75 +3.36%

• ISE Sentiment Index 101.0 -12.93%

• Total Put/Call 1.06 -13.11%

• NYSE Arms 1.05 -47.92% 

Credit Investor Angst:

• North American Investment Grade CDS Index 84.73 +2.21%

• America Energy Sector High-Yield CDS Index 1,189.0 +4.64%

• European Financial Sector CDS Index 75.50 +2.5%

• Western Europe Sovereign Debt CDS Index 19.96 -1.24%

• Asia Pacific Sovereign Debt CDS Index 71.33 +.65%

• Emerging Market CDS Index 334.82 +2.34%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.81 +.11%

• 2-Year Swap Spread 9.5 -.75 basis point

• TED Spread 23.25 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -39.25 +.75 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.52 -.50%
• 3-Month T-Bill Yield .11% -2.0 basis points

• Yield Curve 142.0 -2.0 basis points

• China Import Iron Ore Spot $48.14/Metric Tonne +.69%

• Citi US Economic Surprise Index 0.0 -.5 point

• Citi Eurozone Economic Surprise Index 22.9 -.5 point

• Citi Emerging Markets Economic Surprise Index -2.40 +.8 point

• 10-Year TIPS Spread 1.56 -1.0 basis point
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 2.91 -.07

Overseas Futures:

• Nikkei 225 Futures: Indicating -86 open in Japan 
• China A50 Futures: Indicating -284 open in China

• DAX Futures: Indicating -3 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 25% Net Long