Stocks Slightly Lower into Final Hour on Yen Strength, Oil Decline, Technical Selling, Retail/Energy Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 13.63 -4.4%

• Euro/Yen Carry Return Index 134.07 +.09%

• Emerging Markets Currency Volatility(VXY) 7.28 -.95%

• S&P 500 Implied Correlation 41.54 -2.78%

• ISE Sentiment Index 97.0 +32.88%
  

• Total Put/Call 1.01 -8.18%

• NYSE Arms 1.25 -.05%

Credit Investor Angst:

• North American Investment Grade CDS Index 62.34 -.19%
  

• America Energy Sector High-Yield CDS Index 459.0 +.21%

• European Financial Sector CDS Index 55.77 -.30%

• Western Europe Sovereign Debt CDS Index 5.61 +.63%

• Asia Pacific Sovereign Debt CDS Index 21.46 +.02%

• Emerging Market CDS Index 191.54 +.50%
  

• iBoxx Offshore RMB China Corporate High Yield Index 141.28 +.09%

• 2-Year Swap Spread 26.0 -.5 basis point

• TED Spread 31.5 +.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -26.50 +.5 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 73.91 +.15%
• 3-Month T-Bill Yield .98% -2.0 basis points
  

• Yield Curve 88.0 -1.0 basis point

• China Import Iron Ore Spot $79.93/Metric Tonne +2.55%

• Citi US Economic Surprise Index -27.60 +1.8 points

• Citi Eurozone Economic Surprise Index 8.60 -1.3 points

• Citi Emerging Markets Economic Surprise Index 19.50 +1.2 basis points

• 10-Year TIPS Spread 1.76 -1.0 basis point
  
• 15.6% chance of Fed rate hike at Nov. 1 meeting, 39.1% chance at Dec. 13 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -95 open in Japan 
• China A50 Futures: Indicating +23 open in China

• DAX Futures: Indicating -19 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long