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

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 15.64 +.84%

• Euro/Yen Carry Return Index 138.38 +.3%

• Emerging Markets Currency Volatility(VXY) 10.77 +.65%

• S&P 500 Implied Correlation 57.88 +.63%

• ISE Sentiment Index 95.0 +58.33%

• Total Put/Call 1.06 +7.07%

• NYSE Arms 1.30 -18.03% 

Credit Investor Angst:

• North American Investment Grade CDS Index 78.35 +1.19%

• America Energy Sector High-Yield CDS Index 1,111.0 +.47%

• European Financial Sector CDS Index 68.74 +.90%

• Western Europe Sovereign Debt CDS Index 17.70 -5.70%

• Asia Pacific Sovereign Debt CDS Index 67.32 -1.23%

• Emerging Market CDS Index 307.32 +1.77%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.34 +.08%

• 2-Year Swap Spread 7.0 -3.0 basis points

• TED Spread 29.75 +2.0 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -32.75 +.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 71.87 -.14%
• 3-Month T-Bill Yield .04% unch.

• Yield Curve 141.0 -1.0 basis point

• China Import Iron Ore Spot $48.71/Metric Tonne -.96%

• Citi US Economic Surprise Index -8.4 -1.9 points

• Citi Eurozone Economic Surprise Index 27.7 -5.4 points

• Citi Emerging Markets Economic Surprise Index -6.5 unch.

• 10-Year TIPS Spread 1.55 -2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 3.51 -.31

Overseas Futures:

• Nikkei 225 Futures: Indicating +124 open in Japan 
• China A50 Futures: Indicating unch. open in China

• DAX Futures: Indicating -2 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 50% Net Long