Stocks Lower into Afternoon on Earnings Outlooks, Fed Rate Hike Worries, Profit-Taking, Tech/Biotech Sector Weakness

 Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 13.2 +9.1%

• Euro/Yen Carry Return Index 134.57 -.14%

• Emerging Markets Currency Volatility(VXY) 10.02 -.1%

• S&P 500 Implied Correlation 30.6 +7.15%

• ISE Sentiment Index 100.0 +7.54%
  

• Total Put/Call 1.03 +41.1%

• NYSE Arms .69 -32.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 58.4 +.77%
  

• America Energy Sector High-Yield CDS Index 360.0 -1.99%

• European Financial Sector CDS Index 74.54 +3.75%

• Italian/German 10Y Yld Spread 234.25 +4.25 basis points
  

• Asia Pacific Sovereign Debt CDS Index 11.97 -2.60%

• Emerging Market CDS Index 162.41 -1.10%
  

• iBoxx Offshore RMB China Corporate High Yield Index 149.54 +.33%

• 2-Year Swap Spread 20.0 +1.0 basis point

• TED Spread 35.25 +.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -4.75 -.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 69.97 +.23%

• 3-Month T-Bill Yield 1.99% +1.0 basis point
  

• Yield Curve 28.75 -.5 basis point

• China Iron Ore Spot 66.89 USD/Metric Tonne -.87%

• Citi US Economic Surprise Index -5.10 -.7 point

• Citi Eurozone Economic Surprise Index -31.80 -2.0 points

• Citi Emerging Markets Economic Surprise Index -.7 +.5 point

• 10-Year TIPS Spread 2.12 -1.0 basis point
  

• 80.2% chance of Fed rate hike at Sept. 26th meeting, 81.3% chance at November 8th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -97 open in Japan 

• China A50 Futures: Indicating -9 open in China

• DAX Futures: Indicating -49 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 50% Net Long

Bear Radar

Style Underperformer:

• Small-Cap Growth -2.3%

Sector Underperformers:

• 1) Internet -3.2% 2) Disk Drives -3.2% 3) Computer Hardware -3.1%

Stocks Falling on Unusual Volume: 

• PDD, LOGM, IMPV, BOOM, UNFI, SAM, MGLN, TMST, TWTR, NCR, PFPT, EA, VIRT, CBS, BZH, HLI, HRC, INTC, WDC, DXCM, Z, DECK, JNPR, EW and CLUB

Stocks With Unusual Put Option Activity:

• 1) IRM 2) CBS 3) NSC 4) COG 5) TWTR

Stocks With Most Negative News Mentions:

• 1) TWTR 2) LOGM 3) JNPR 4) INTC 5) DECK

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Value -.2%

Sector Outperformers:

• 1) Oil Service +1.7% 2) Steel +1.1% 3) Airlines +.9%

Stocks Rising on Unusual Volume:

• GPMT, TEAM, OMCL, BCEI, EXPE, SPSC, CY, GT, FIX, YUMC, INT, NATI, ULH, MHK, BJRI, NXPI, EHTH, ZBH, LRCX, CMG, AMZN, AMD, LPLA, SKYW, CINF, HF, NOV, EXPE, ICHR, LEXEA, FBHS, FTI, SKYW, DLR, SIVB and GPMT

Stocks With Unusual Call Option Activity:

• 1) MHK 2) CY 3) PSX 4) GT 5) LRCX

Stocks With Most Positive News Mentions:

• 1) CMG 2) EXPE 3) NXPI 4) CHK 5) MXIM

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +13.7% Above 100-Day Average
• 6 Sectors Rising, 5 Sectors Declining
• 40.0% of Issues Advancing, 56.1% Declining
• 66 New 52-Week Highs, 21 New Lows
• 52.7% of Issues Above 200-day Moving Average
• Average 14-Day RSI 49.3%
• Vix 12.4 +2.3%
• Total Put/Call .9 +23.3%
• TRIN/Arms .72 -30.2%

Stocks Mostly Lower into Final Hour on Earnings Outlooks, Long-Term Rates, Technical Selling, Biotech/Tech Sector Weakness

 Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Mixed
  

• Volume: Heavy

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 12.24 -.41%

• Euro/Yen Carry Return Index 134.8 -.49%

• Emerging Markets Currency Volatility(VXY) 10.02 +1.31%

• S&P 500 Implied Correlation 28.4 +5.6%

• ISE Sentiment Index 106.0 +2.9%
  

• Total Put/Call .75 -7.4%

• NYSE Arms 1.19 +21.7%

Credit Investor Angst:

• North American Investment Grade CDS Index 57.95 -2.74%
  

• America Energy Sector High-Yield CDS Index 367.0 -.49%

• European Financial Sector CDS Index 71.84 -5.58%

• Italian/German 10Y Yld Spread 230.0 +1.75 basis points
  

• Asia Pacific Sovereign Debt CDS Index 12.33 -3.15%

• Emerging Market CDS Index 164.59 -.95%
  

• iBoxx Offshore RMB China Corporate High Yield Index 149.04 +.14%

• 2-Year Swap Spread 19.0 -1.0 basis point

• TED Spread 34.50 +.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -4.5 -1.75 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 69.85 -.38%
• 3-Month T-Bill Yield 1.98% -1.0 basis point
  

• Yield Curve 29.25 +.5 basis point

• China Iron Ore Spot 66.95 USD/Metric Tonne +2.06%

• Citi US Economic Surprise Index -4.40 +1.0 point

• Citi Eurozone Economic Surprise Index -29.80 +3.0 points

• Citi Emerging Markets Economic Surprise Index -1.2 -.4 point

• 10-Year TIPS Spread 2.13 unch.
  
• 80.2% chance of Fed rate hike at Sept. 26th meeting, 81.3% chance at November 8th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +63 open in Japan 
• China A50 Futures: Indicating +38 open in China

• DAX Futures: Indicating -1 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 75% Net Long