Stocks Close Slightly Lower on Trade War Worries, Higher Long-Term Rates, Emerging Markets Debt Angst, Commodity/Gaming Sector Weakness

 Broad Equity Market Tone:

• Advance/Decline Line: Slightly Lower
  

• Sector Performance: Mixed
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 13.01 +1.4%

• Euro/Yen Carry Return Index 135.39 -.51%

• Emerging Markets Currency Volatility(VXY) 10.04 +.6%

• S&P 500 Implied Correlation 31.19 +14.67%

• ISE Sentiment Index 111.0 unch.
  

• Total Put/Call 1.02 +2.0%

• NYSE Arms .95 -20.94%

Credit Investor Angst:

• North American Investment Grade CDS Index 58.56 +.61%
  

• America Energy Sector High-Yield CDS Index 359.0 +.41%

• European Financial Sector CDS Index 74.74 +1.08%

• Italian/German 10Y Yld Spread 231.25 +3.5 basis points
  

• Asia Pacific Sovereign Debt CDS Index 11.08 +1.37%

• Emerging Market CDS Index 172.55 +2.72%
  

• iBoxx Offshore RMB China Corporate High Yield Index 150.0 +.08%

• 2-Year Swap Spread 21.75 +.5 basis point

• TED Spread 32.0 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -5.0 +.75 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 69.77 -.28%
• 3-Month T-Bill Yield 2.02% unch.
  

• Yield Curve 32.25 +2.75 basis points

• China Iron Ore Spot 66.59 USD/Metric Tonne -.13%

• Citi US Economic Surprise Index -2.80 -.6 point

• Citi Eurozone Economic Surprise Index -26.20 -.3 points

• Citi Emerging Markets Economic Surprise Index -3.30 -3.3 points

• 10-Year TIPS Spread 2.14 +1.0 basis point
  
• 81.1% chance of Fed rate hike at Nov. 8th meeting, 95.3% chance at Dec. 19th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -61 open in Japan 
• China A50 Futures: Indicating -34 open in China

• DAX Futures: Indicating -4 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 75% Net Long