Stocks Slightly Lower into Final Hour on Rising European/Emerging Markets/US High-Yield Debt Angst, Rising Long-Term Rates, Earnings Outlook Worries, Hospital/Homebuilding Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Slightly Above Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 23.01 -5.66%

• Euro/Yen Carry Return Index 138.78 -.13%

• Emerging Markets Currency Volatility(VXY) 11.64 +.43%

• S&P 500 Implied Correlation 58.69 -3.91%

• ISE Sentiment Index 73.0 +46.0%

• Total Put/Call 1.09 +1.87%

• NYSE Arms .72 -53.27% 

Credit Investor Angst:

• North American Investment Grade CDS Index 95.29 +3.60%

• America Energy Sector High-Yield CDS Index 1,650.0 +14.78%

• European Financial Sector CDS Index 82.02 +3.70%

• Western Europe Sovereign Debt CDS Index 17.38 +2.37%

• Asia Pacific Sovereign Debt CDS Index 77.43 -1.22%

• Emerging Market CDS Index 370.45 +4.47%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.36 -.07%

• 2-Year Swap Spread 6.25 -3.75 basis points

• TED Spread 29.25 +4.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -36.75 -.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 69.16 -.17%
• 3-Month T-Bill Yield .20% -2.0 basis points

• Yield Curve 127.0 +2.0 basis points

• China Import Iron Ore Spot $39.06/Metric Tonne +1.98%

• Citi US Economic Surprise Index -20.70 +1.6 points

• Citi Eurozone Economic Surprise Index 19.0 +1.7 points

• Citi Emerging Markets Economic Surprise Index 17.70 +2.1 basis points

• 10-Year TIPS Spread 1.49 -1.0 basis point
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 1.16 +.28

Overseas Futures:

• Nikkei 225 Futures: Indicating -138 open in Japan 
• China A50 Futures: Indicating -247 open in China

• DAX Futures: Indicating +89 open in Germany

Portfolio: 

• Slightly Lower: On losses in my biotech/retail sector longs and emerging markets shorts

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my (EEM) short

• Market Exposure: Moved to 50% Net Long