Stocks Lower into Final Hour on Earnings Jitters, Profit-Taking, Technical Selling, Commodity/Gaming Sector Weakness

 Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 12.9 +7.1%

• Euro/Yen Carry Return Index 125.80 +.51%

• Emerging Markets Currency Volatility(VXY) 7.1 +1.2%

• S&P 500 Implied Correlation 34.1 +5.5%

• ISE Sentiment Index 101.0 +11.0%
  

• Total Put/Call .73 +2.8%

• NYSE Arms 1.22 +22.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 50.74 +1.62%
  

• America Energy Sector High-Yield CDS Index 525.0 -18.8%

• European Financial Sector CDS Index 55.05 +2.73%

• Italian/German 10Y Yld Spread 188.0 +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 57.66 -3.0%
  

• Emerging Market CDS Index 156.44 +.23%
  

• iBoxx Offshore RMB China Corporate High Yield Index 164.94 -.03%

• 2-Year Swap Spread 1.75 -1.5 basis points

• TED Spread 18.75 -1.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -22.75 -.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 67.37 -.20%
• 3-Month T-Bill Yield 2.11% +3.0 basis points

• Yield Curve 22.0 -1.0 basis point

• China Iron Ore Spot 112.68 USD/Metric Tonne +.09%

• Citi US Economic Surprise Index -40.6 +9.7 points

• Citi Eurozone Economic Surprise Index -39.80 -6.8 points

• Citi Emerging Markets Economic Surprise Index -21.7 +.5 point

• 10-Year TIPS Spread 1.80 +1.0 basis point
• 100.0% chance of Fed rate cut at Sept. 18th meeting, 100.0% chance of cut at October 30th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -106 open in Japan 
• China A50 Futures: Indicating -80 open in China

• DAX Futures: Indicating -7 open in Germany

Portfolio:

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

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

• Market Exposure: Moved to 75% Net Long

Bear Radar

Style Underperformer:

• Small-Cap Value -.9%

Sector Underperformers:

• 1) Oil Service -4.0% 2) Airlines -2.5% 3) Gold & Silver -2.4%

Stocks Falling on Unusual Volume: 

• PTC, SAVE, ALGN, NXGN, TAL, TREE, CARA, CTXS, AIMC, GRA, KEX, COR, LNTH, ISBC, CLGX, BJRI, EQT, GGG, TRN, VAR, TSLA, INVA and OII

Stocks With Unusual Put Option Activity:

• 1) HAS 2) GLW 3) AET 4) ALGN 5) KO

Stocks With Most Negative News Mentions:

• 1) ALGN 2) TSLA 3) PTC 4) SDLP 5) SAVE

Charts:

• ETFs Falling on Unusual Volume
• Stocks Falling on Unusual Volume

Bull Radar

Style Outperformer:

• Large-Cap Value -.4%

Sector Outperformers:

• 1) Homebuilders +1.7% 2) Networking +1.1% 3) Drugs +.5%

Stocks Rising on Unusual Volume:

• ANIK, NTGR, BUD, KNL, OLBK, LOB, KN, MTH, ALGT, HCSG, DBD, SLP, AUDC, CSTM, WST, ALEC, MHO, GOSS, UFPI, TPX, CRI, BC, AZN, LAZ, SGMS, NVCR, UFPI, ECHO, VC, RS, DMRC, RTN, BMY, FTI, FCN, WWE and MAS

Stocks With Unusual Call Option Activity:

• 1) UAA 2) CCI 3) EWG 4) ALXN 5) MMM

Stocks With Most Positive News Mentions:

• 1) VC 2) AXE 3) WST 4) MAS 5) RTN

Charts:

• ETFs Rising on Unusual Volume
• Stocks Rising on Unusual Volume

Morning Market Internals

NYSE Composite Index:

• Volume Running +16.9% Above 100-Day Average
• 3 Sectors Rising, 8 Sectors Declining
• 34.3% of Issues Advancing, 62.4% Declining
• 207 New 52-Week Highs, 56 New Lows
• 64.4% of Issues Above 200-day Moving Average
• Average 14-Day RSI 51.7%
• Vix 12.8 +5.8%
• Total Put/Call .73 +2.8%
• TRIN/Arms 1.17 +18.0%

Stocks Higher into Final Hour on Earnings Optimism, Central Bank Hopes, Less European/Emerging Markets/US High-Yield Debt Angst, Retail/Tech Sector Strength

 Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Around Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 12.24 -2.93%

• Euro/Yen Carry Return Index 125.14 -.13%

• Emerging Markets Currency Volatility(VXY) 6.95 +.29%

• S&P 500 Implied Correlation 32.70 -1.95%

• ISE Sentiment Index 94.0 -16.8%
  

• Total Put/Call .67 -10.7%

• NYSE Arms 1.01 +27.9%

Credit Investor Angst:

• North American Investment Grade CDS Index 49.63 -3.26%
  

• America Energy Sector High-Yield CDS Index 647.0 +.12%

• European Financial Sector CDS Index 53.58 -3.79%

• Italian/German 10Y Yld Spread 187.0 -8.75 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 59.51 -3.1%
  

• Emerging Market CDS Index 156.26 -.36%
  

• iBoxx Offshore RMB China Corporate High Yield Index 164.98 -.02%

• 2-Year Swap Spread 3.25 +.25 basis point

• TED Spread 20.25 -5.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -23.0 -2.75 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 67.51 +.07%
• 3-Month T-Bill Yield 2.08% +3.0 basis points

• Yield Curve 23.0 -.75 basis point

• China Iron Ore Spot 111.37 USD/Metric Tonne +.24%

• Citi US Economic Surprise Index -50.3 -5.4 points

• Citi Eurozone Economic Surprise Index -33.0 -24.5 points

• Citi Emerging Markets Economic Surprise Index -22.2 +.6 point

• 10-Year TIPS Spread 1.79 -2.0 basis points
• 100.0% chance of Fed rate cut at Sept. 18th meeting, 100.0% chance of cut at October 30th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +11 open in Japan 
• China A50 Futures: Indicating +3 open in China

• DAX Futures: Indicating +27 open in Germany

Portfolio:

• Higher: On gains in my tech/industrial/medical/retail sector longs

• Disclosed Trades: None

• Market Exposure: 100% Net Long