Stocks Lower into Afternoon on Rising Long-Term Rates, Valuation Concerns, Emerging Market Debt Angst, Tech/Homebuilding Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Heavy

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 27.0 +26.8%
• Bloomberg Global Risk On/Risk Off Index 2,680.0 -121.0 points

• Euro/Yen Carry Return Index 133.53 +.23%

• Emerging Markets Currency Volatility(VXY) 10.0 +1.0%

• S&P 500 Implied Correlation 54.4 +9.4%

• ISE Sentiment Index 100.0 -36.0 points
  

• Total Put/Call .74 +7.3%

• NYSE Arms .73 +14.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 55.17 +6.1%
  

• US Energy High-Yield OAS 474.85 -1.37%

• European Financial Sector CDS Index 62.02 +3.48%

• Italian/German 10Y Yld Spread 104.0 +4.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 57.78 -.27%
  

• Emerging Market CDS Index 181.89 +8.22%
  

• iBoxx Offshore RMB China Corporate High Yield Index 186.33 +.04%

• 2-Year Swap Spread 8.75 +.5 basis point

• TED Spread 15.25 +.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -4.75 -1.0 basis point
  
• MBS  5/10 Treasury Spread  86.25 +1.75 basis points
  
• IHS Markit CMBX BBB- 6 75.5 unch.

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 62.17 -1.01%
• 3-Month T-Bill Yield .04% +1.0 basis point
  

• Yield Curve 127.0 +5.0 basis points
  

• China Iron Ore Spot 171.85 USD/Metric Tonne +3.44%

• Citi US Economic Surprise Index 85.0 +4.7 points

• Citi Eurozone Economic Surprise Index 160.4 +6.0 points
  

• Citi Emerging Markets Economic Surprise Index 62.7 +2.0 points

• 10-Year TIPS Spread 2.16 -2.0 basis points
• 100.0% chance of no change at April 28th meeting, 100.0% chance of no change at June 16th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -297 open in Japan 
• China A50 Futures: Indicating -158 open in China

• DAX Futures: Indicating -45 open in Germany

Portfolio:

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

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my emerging market shorts
  

• Market Exposure: Moved to 50% Net Long