Stocks Falling into Final Hour on Less Economic Optimism, European/Emerging Markets/US High-Yield Debt Angst, Oil Decline, Energy/Transport Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Substantially Lower
  

• Volume: Below Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 12.26 +8.02%

• Euro/Yen Carry Return Index 127.07 -.56%

• Emerging Markets Currency Volatility(VXY) 9.34 -.11%

• S&P 500 Implied Correlation 45.86 -2.11%

• ISE Sentiment Index 74.0 -1.0%
  

• Total Put/Call .92 unch.

• NYSE Arms 1.58 +57.3%

Credit Investor Angst:

• North American Investment Grade CDS Index 65.94 +1.95%
  

• America Energy Sector High-Yield CDS Index 395.0 +2.55%

• European Financial Sector CDS Index 89.07 +2.41%

• Western Europe Sovereign Debt CDS Index 14.50 -.14%

• Asia Pacific Sovereign Debt CDS Index 27.57 -.68%

• Emerging Market CDS Index 220.34 +1.61%
  

• iBoxx Offshore RMB China Corporate High Yield Index 135.94 +.11%

• 2-Year Swap Spread 33.0 -.25 basis point

• TED Spread 36.5 -1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -25.75 -4.75 basis points
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.80 -.19%
• 3-Month T-Bill Yield .76% +2.0 basis points
  

• Yield Curve 122.0 -1.0 basis point
  

• China Import Iron Ore Spot $88.14/Metric Tonne -.14%

• Citi US Economic Surprise Index 46.40 -1.1 points

• Citi Eurozone Economic Surprise Index 48.90 -2.5 points

• Citi Emerging Markets Economic Surprise Index 54.50 +5.9 points

• 10-Year TIPS Spread 1.99 -3.0 basis points
  
• 100.0% chance of Fed rate hike at May 3 meeting, 100.0% chance at June 14 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -109 open in Japan 
• China A50 Futures: Indicating -30 open in China

• DAX Futures: Indicating +3 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 50% Net Long