Stocks Slightly Lower into Final Hour on Global Growth Fears, Rising Eurozone Debt Angst, Profit-Taking, Defense/Energy Sector Weakness

Broad Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• VIX 14.28 -.28%
  

• ISE Sentiment Index 133.0 +70.5%

• Total Put/Call .85 -8.6%

• NYSE Arms 1.07 +5.74%

Credit Investor Angst:

• North American Investment Grade CDS Index 89.15 -1.27%

• European Financial Sector CDS Index 146.40 +2.94%

• Western Europe Sovereign Debt CDS Index 102.81 +1.92%

• Emerging Market CDS Index 230.55 +.66%

• 2-Year Swap Spread 16.75 +1.0 bp

• TED Spread 23.25 -.5 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -12.0 +.25 bp

Economic Gauges:

• 3-Month T-Bill Yield .07% +1 bp

• Yield Curve 172.0 unch.

• China Import Iron Ore Spot $152.5/Metric Tonne +2.07%

• Citi US Economic Surprise Index -27.9 +2.9 points

• 10-Year TIPS Spread 2.56 +1 bp

Overseas Futures:

• Nikkei Futures: Indicating +17 open in Japan

• DAX Futures: Indicating -5 open in Germany

Portfolio:

• Slightly Higher: On gains in my tech/retail/medical/biotech sector longs
• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
• Market Exposure: Moved to 50% Net Long