Stocks Slightly Lower into Final Hour on Rate Worries, Rising Emerging Markets Debt Angst, Technical Selling, Homebuilding/Retail Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 13.05 +2.59%
• Euro/Yen Carry Return Index 134.12 -1.10%
• Emerging Markets Currency Volatility(VXY) 9.29 -.11%
• S&P 500 Implied Correlation 48.52 +.58%

• ISE Sentiment Index 128.0 +17.43%

• Total Put/Call .98 +10.11%

• NYSE Arms .92 -20.05% 

Credit Investor Angst:

• North American Investment Grade CDS Index 75.90 +1.66%

• European Financial Sector CDS Index 138.19 +1.22%

• Western Europe Sovereign Debt CDS Index 83.50 unch.

• Emerging Market CDS Index 312.83 +1.45%

• 2-Year Swap Spread 17.5 unch.

• TED Spread 22.50 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -8.0 +.25 bp

Economic Gauges:

• 3-Month T-Bill Yield .04% unch.

• Yield Curve 229.0 -4 bps

• China Import Iron Ore Spot $133.10/Metric Tonne +1.29%

• Citi US Economic Surprise Index 36.70 unch.
• Citi Emerging Markets Economic Surprise Index -27.60 +.2 point

• 10-Year TIPS Spread 2.26 unch.

Overseas Futures:

• Nikkei Futures: Indicating -60 open in Japan

• DAX Futures: Indicating +8 open in Germany

Portfolio: 

• Slightly Higher: On gains in my biotech sector longs, index hedges and emerging markets shorts
• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
• Market Exposure: Moved to 50% Net Long