Stocks Reversing Lower into Final Hour on Rising Global Growth Fears, Increasing Eurozone Debt Angst, Earnings Worries, Technical Selling

Broad Market Tone:

• Advance/Decline Line: Substantially Lower
• Sector Performance: Almost Every Sector Declining
• Volume: Slightly Below Average
• Market Leading Stocks: Underperforming

Equity Investor Angst:

• VIX 15.01 +6.08%
• ISE Sentiment Index 101.0 -23.4%
• Total Put/Call .79 -1.25%
• NYSE Arms 1.01 -35.65%

Credit Investor Angst:

• North American Investment Grade CDS Index 98.16 bps +2.63%
• European Financial Sector CDS Index 193.93 bps +3.80%
• Western Europe Sovereign Debt CDS Index 136.92 +1.14%
• Emerging Market CDS Index 227.12 +3.23%
• 2-Year Swap Spread 13.75 +.5 basis point
• TED Spread 25.75 -1.25 basis points
• 3-Month EUR/USD Cross-Currency Basis Swap -22.75 -.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .11% +1 basis point
• Yield Curve 141.0 -5 basis points
• China Import Iron Ore Spot $103.70/Metric Tonne unch.
• Citi US Economic Surprise Index 29.1 +8.5 points
• 10-Year TIPS Spread 2.44 -2 basis points

Overseas Futures:

• Nikkei Futures: Indicating -107 open in Japan
• DAX Futures: Indicating -62 open in Germany

Portfolio:

• Slightly Higher: On gains in my Emerging Markets shorts and Index Hedges
• Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my Emerging Markets shorts
• Market Exposure: Moved to 25% Net Long