Stocks Reversing Lower into Close on Terrorism Fears, Fed Rate-Hike Worries, Oil Decline, Transport/Energy 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) 16.17 +10.09%

• Euro/Yen Carry Return Index 136.73 +.16%

• Emerging Markets Currency Volatility(VXY) 10.71 +.28%

• S&P 500 Implied Correlation 57.07 +2.96%

• ISE Sentiment Index 56.0 -52.54%

• Total Put/Call 1.03 unch.

• NYSE Arms 1.26 +76.41% 

Credit Investor Angst:

• North American Investment Grade CDS Index 82.13 +.73%

• America Energy Sector High-Yield CDS Index 1,275.0 -2.69%

• European Financial Sector CDS Index 66.50 -1.63%

• Western Europe Sovereign Debt CDS Index 17.27 +1.38%

• Asia Pacific Sovereign Debt CDS Index 67.95 +.99%

• Emerging Market CDS Index 326.05 +1.10%
  

• iBoxx Offshore RMB China Corporate High Yield Index 124.04 -.06%

• 2-Year Swap Spread 6.75 +.5 basis point

• TED Spread 20.25 -1.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -51.75 +.5 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.25 -.16%
• 3-Month T-Bill Yield .21% +1.0 basis point

• Yield Curve 124.0 unch.

• China Import Iron Ore Spot $41.13/Metric Tonne -2.63%

• Citi US Economic Surprise Index -17.70 +2.5 points

• Citi Eurozone Economic Surprise Index 21.20 -7.7 points

• Citi Emerging Markets Economic Surprise Index 10.5 +.6 point

• 10-Year TIPS Spread 1.59 -1.0 basis point
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 1.81 +.21

Overseas Futures:

• Nikkei 225 Futures: Indicating -120 open in Japan 
• China A50 Futures: Indicating -130 open in China

• DAX Futures: Indicating -65 open in Germany

Portfolio: 

• Slightly Higher: On gains in my 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