Stocks Falling into Afternoon on Trade War Worries, Emerging Markets Debt Angst, Profit-Taking, Tech/Biotech Sector Weakness

 Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Mixed
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 13.8 +5.8%

• Euro/Yen Carry Return Index 135.29 +.48%

• Emerging Markets Currency Volatility(VXY) 10.13 +1.0%

• S&P 500 Implied Correlation 30.79 -1.19%

• ISE Sentiment Index 78.0 -17.0%
  

• Total Put/Call .97 -6.7%

• NYSE Arms .78 +5.3%

Credit Investor Angst:

• North American Investment Grade CDS Index 59.02 +1.55%
  

• America Energy Sector High-Yield CDS Index 361.0 -1.52%

• European Financial Sector CDS Index 76.74 +2.95%

• Italian/German 10Y Yld Spread 234.0 -.25 basis point
  

• Asia Pacific Sovereign Debt CDS Index 11.80 -1.21%

• Emerging Market CDS Index 166.16 +1.82%
  

• iBoxx Offshore RMB China Corporate High Yield Index 149.93 +.26%

• 2-Year Swap Spread 20.75 +.75 basis point

• TED Spread 35.0 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -6.0 -1.25 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.13 +.18%
• 3-Month T-Bill Yield 1.99% unch.
  

• Yield Curve 29.75 +1.0 basis point

• China Iron Ore Spot 67.53 USD/Metric Tonne +.40%

• Citi US Economic Surprise Index -3.30 +1.8 points

• Citi Eurozone Economic Surprise Index -27.70 -4.1 points

• Citi Emerging Markets Economic Surprise Index .6 +1.3 points

• 10-Year TIPS Spread 2.13 +1.0 basis point
  
• 80.3% chance of Fed rate hike at Sept. 26th meeting, 81.4% chance at November 8th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -29 open in Japan 
• China A50 Futures: Indicating +20 open in China

• DAX Futures: Indicating -17 open in Germany

Portfolio: 

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

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 25% Net Long