Stocks Reversing Slightly Lower into Final Hour on Terrorism Fears, Oil Decline, Earnings Outlook Worries, Commodity/Gaming Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 19.09 +5.12%

• Euro/Yen Carry Return Index 137.27 -.18%

• Emerging Markets Currency Volatility(VXY) 10.54 -1.13%

• S&P 500 Implied Correlation 57.52 -.66%

• ISE Sentiment Index 88.0 +10.0%

• Total Put/Call .78 -9.30%

• NYSE Arms 1.20 +136.30% 

Credit Investor Angst:

• North American Investment Grade CDS Index 83.74 +2.0%

• America Energy Sector High-Yield CDS Index 1,236.0 -.3%

• European Financial Sector CDS Index 70.25 -6.5%

• Western Europe Sovereign Debt CDS Index 20.12 -3.85%

• Asia Pacific Sovereign Debt CDS Index 69.14 -2.03%

• Emerging Market CDS Index 322.79 -.99%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.83 +.11%

• 2-Year Swap Spread 9.25 +.5 basis point

• TED Spread 24.75 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -42.5 -2.25 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.53 +.06%
• 3-Month T-Bill Yield .12% +2.0 basis points

• Yield Curve 1420.0 -2.0 basis points

• China Import Iron Ore Spot $45.58/Metric Tonne -4.52%

• Citi US Economic Surprise Index -2.8 -4.3 points

• Citi Eurozone Economic Surprise Index 26.5 +1.6 points

• Citi Emerging Markets Economic Surprise Index 1.0 +1.1 points

• 10-Year TIPS Spread 1.56 +2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 2.79 -.10

Overseas Futures:

• Nikkei 225 Futures: Indicating +185 open in Japan 
• China A50 Futures: Indicating -101 open in China

• DAX Futures: Indicating -95 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long