Stocks Lower into Final Hour on Geopolitical Concerns, European/Emerging Markets/US High-Yield Debt Angst, Yen Strength, Hospital/Retail Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Around Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 12.28 +12.59%

• Euro/Yen Carry Return Index 134.63 -.48%

• Emerging Markets Currency Volatility(VXY) 7.76 +4.16%

• S&P 500 Implied Correlation 34.35 +10.27%

• ISE Sentiment Index n/a
  

• Total Put/Call 1.09 +17.2%

• NYSE Arms .92 -10.9%

Credit Investor Angst:

• North American Investment Grade CDS Index 59.83 +1.72%
  

• America Energy Sector High-Yield CDS Index 437.0 +1.14%

• European Financial Sector CDS Index 53.62 +3.70%

• Western Europe Sovereign Debt CDS Index 5.08 +.40%

• Asia Pacific Sovereign Debt CDS Index 20.70 +7.25%

• Emerging Market CDS Index 188.33 +1.80%
  

• iBoxx Offshore RMB China Corporate High Yield Index 140.82 +.03%

• 2-Year Swap Spread 26.50 +1.0 basis point

• TED Spread 26.75 -1.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -25.25 unch.

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 73.55 -.26%
• 3-Month T-Bill Yield 1.04% unch.
  

• Yield Curve 91.0 -1.0 basis point

• China Import Iron Ore Spot $75.46/Metric Tonne n/a

• Citi US Economic Surprise Index -29.70 +1.7 points

• Citi Eurozone Economic Surprise Index 13.20 +2.6 basis points

• Citi Emerging Markets Economic Surprise Index 14.20 -.2 basis point

• 10-Year TIPS Spread 1.83 unch.
  
• 19.5% chance of Fed rate hike at Nov. 1 meeting, 46.7% chance at Dec. 13 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -18 open in Japan 
• China A50 Futures: Indicating -2 open in China

• DAX Futures: Indicating -9 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 75% Net Long