Stocks Reversing Slightly Lower into Afternoon on Terrorism Fears, Fed Rate Hike Concerns, Emerging Markets Currnecy Worries, Metals & Mining/Road & Rail Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Slightly Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 16.06 +3.81%

• Euro/Yen Carry Return Index 136. 41 -.14%

• Emerging Markets Currency Volatility(VXY) 10.18 -.88%

• S&P 500 Implied Correlation 57.04 +1.63%

• ISE Sentiment Index 107.0 +17.58%

• Total Put/Call 1.03 +9.57%

• NYSE Arms 1.37 -3.19% 

Credit Investor Angst:

• North American Investment Grade CDS Index 84.80 +.26%

• America Energy Sector High-Yield CDS Index 1,335.0 +2.86%

• European Financial Sector CDS Index 69.63 -.48%

• Western Europe Sovereign Debt CDS Index 19.03 +.18%

• Asia Pacific Sovereign Debt CDS Index 67.55 -.46%

• Emerging Market CDS Index 3112.99 +.41%
  

• iBoxx Offshore RMB China Corporate High Yield Index 124.24 +.07%

• 2-Year Swap Spread 6.75 +.75 basis point

• TED Spread 28.5 +.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -50.75 -3.0 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.70 -.59%
• 3-Month T-Bill Yield .11% +1.0 basis point

• Yield Curve 133.0 -1.0 basis point

• China Import Iron Ore Spot $44.75/Metric Tonne -.36%

• Citi US Economic Surprise Index -12.8 -3.7 points

• Citi Eurozone Economic Surprise Index 32.80 +8.8 points

• Citi Emerging Markets Economic Surprise Index 2.50 +.4 point

• 10-Year TIPS Spread 1.64 unch.
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 2.67 n/a

Overseas Futures:

• Nikkei 225 Futures: Indicating -12 open in Japan 
• China A50 Futures: Indicating -67 open in China

• DAX Futures: Indicating -35 open in Germany

Portfolio: 

• Higher: On gains in my retail/biotech/medical sector longs and emerging markets shorts

• Disclosed Trades: None

• Market Exposure: 50% Net Long