Stocks Slightly Lower into Afternoon on Emerging Markets/US High-Yield Debt Angst, Oil Decline, Technical Selling, Energy/Retail Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 10.69 -1.6%

• Euro/Yen Carry Return Index 129.64 +.10%

• Emerging Markets Currency Volatility(VXY) 7.75 +.39%

• S&P 500 Implied Correlation 36.33 +.39%

• ISE Sentiment Index 75.0 +70.5%
  

• Total Put/Call .91 +7.06%

• NYSE Arms 1.26 -27.43%

Credit Investor Angst:

• North American Investment Grade CDS Index 62.26 +1.93%
  

• America Energy Sector High-Yield CDS Index 461.0 +5.37%

• European Financial Sector CDS Index 59.68 -2.62%

• Western Europe Sovereign Debt CDS Index 6.42 -2.43%

• Asia Pacific Sovereign Debt CDS Index 18.30 +2.21%

• Emerging Market CDS Index 201.22 -.15%
  

• iBoxx Offshore RMB China Corporate High Yield Index 139.40 +.02%

• 2-Year Swap Spread 19.75 -.5 basis point

• TED Spread 27.5 +1.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -30.0 +2.75 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 72.30 -.19%
• 3-Month T-Bill Yield 1.0% -1.0 basis point
  

• Yield Curve 81.0 unch.

• China Import Iron Ore Spot $56.82/Metric Tonne +.66%

• Citi US Economic Surprise Index -76.50 +.7 point

• Citi Eurozone Economic Surprise Index 18.20 -4.6 points

• Citi Emerging Markets Economic Surprise Index 9.6 +.2point

• 10-Year TIPS Spread 1.67 unch.
  
• 24.3% chance of Fed rate hike at Sept. 20 meeting, 27.5% chance at Nov. 1 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -6 open in Japan 
• China A50 Futures: Indicating -13 open in China

• DAX Futures: Indicating -19 open in Germany

Portfolio: 

• Higher: On gains in my biotech/medical/tech sector longs 

• Disclosed Trades: None

• Market Exposure: 75% Net Long