Stocks Reversing Lower into Final Hour on Fed Rate Hike Fears, Oil Decline, Earnings Outlook Worries, Retail/Commodity Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 15.20 +4.54%

• Euro/Yen Carry Return Index 137.86 -.60%

• Emerging Markets Currency Volatility(VXY) 10.68 +1.14%

• S&P 500 Implied Correlation 56.54 +1.64%

• ISE Sentiment Index 55.0 -33.73%

• Total Put/Call 1.0 +5.26%

• NYSE Arms 1.38 +104.15% 

Credit Investor Angst:

• North American Investment Grade CDS Index 77.38 +2.54%

• America Energy Sector High-Yield CDS Index 1,100.0 -2.40%

• European Financial Sector CDS Index 68.13 +.56%

• Western Europe Sovereign Debt CDS Index 18.77 -3.50%

• Asia Pacific Sovereign Debt CDS Index 68.12 -.84%

• Emerging Market CDS Index 301.49 +.74%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.25 +.09%

• 2-Year Swap Spread 10.0 -1.25 basis points

• TED Spread 27.75 +2.0 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -33.0 -2.75 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 71.96 -.61%
• 3-Month T-Bill Yield .04% -1.0 basis point

• Yield Curve 142.0 -3.0 basis points

• China Import Iron Ore Spot $49.18/Metric Tonne +.14%

• Citi US Economic Surprise Index -6.5 +6.9 points

• Citi Eurozone Economic Surprise Index 33.1 +.7 point

• Citi Emerging Markets Economic Surprise Index -6.5 +1.8 points

• 10-Year TIPS Spread 1.57 -2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 3.82 -.05

Overseas Futures:

• Nikkei 225 Futures: Indicating +169 open in Japan 
• China A50 Futures: Indicating -44 open in China

• DAX Futures: Indicating +12 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long