Stocks Sharply Lower into Final Hour on Terror Fears, Rising Global Growth Worries, Eurozone Debt Concerns, Homebuilder/Commodity Sector Weakness

Broad Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Every Sector Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• VIX 16.14 +33.83%

• ISE Sentiment Index 76.0 +35.71%

• Total Put/Call 1.17 +2.63%

• NYSE Arms 1.46 +5.99%

Credit Investor Angst:

• North American Investment Grade CDS Index 84.77 +3.42%

• European Financial Sector CDS Index 171.04 +2.08%

• Western Europe Sovereign Debt CDS Index 103.14 +.80%

• Emerging Market CDS Index 226.55 +1.64%

• 2-Year Swap Spread 14.75 +.25 bp

• TED Spread 22.25 -.25 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -17.25 +.5 bp

Economic Gauges:

• 3-Month T-Bill Yield .06% unch.

• Yield Curve 146.0 -3 basis points

• China Import Iron Ore Spot $140.90/Metric Tonne -.07%

• Citi US Economic Surprise Index 3.0 -4.8 points

• 10-Year TIPS Spread 2.40 -4 bps

Overseas Futures:

• Nikkei Futures: Indicating -245 open in Japan

• DAX Futures: Indicating +7 open in Germany

Portfolio: 

• Slightly Lower: On losses in my biotech/tech/medical/retail sector longs
• Disclosed Trades: Added to my (IWM)/(QQQ) hedges
• Market Exposure: Moved to 25% Net Long