Stocks Falling into Final Hour on US Debt Ceiling/Govt Shutdown Worries, Rising European/Emerging Markets Debt Angst, Technical Selling, Energy/REIT Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 16.59 +7.31%

• Euro/Yen Carry Return Index 138.50 -.02%

• Emerging Markets Currency Volatility(VXY) 10.10 +.10%

• S&P 500 Implied Correlation 50.0 +5.46%

• ISE Sentiment Index 63.0 -18.18%

• Total Put/Call 1.09 +15.96%

• NYSE Arms 1.39 +10.78% 

Credit Investor Angst:

• North American Investment Grade CDS Index 81.98 +1.11%

• European Financial Sector CDS Index 147.59 +1.62%

• Western Europe Sovereign Debt CDS Index 87.93 +3.56%

• Emerging Market CDS Index 292.98 -.33%

• 2-Year Swap Spread 13.25 -.75 basis point

• TED Spread 24.25 +.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -7.0 -.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .00% -1 basis point

• Yield Curve 230.0 +1 basis point

• China Import Iron Ore Spot $131.40/Metric Tonne -.38%

• Citi US Economic Surprise Index 50.5 +4.0 points

• Citi Emerging Markets Economic Surprise Index 6.20 +2.0 points

• 10-Year TIPS Spread 2.19 +1 basis point

Overseas Futures:

• Nikkei Futures: Indicating +125 open in Japan

• DAX Futures: Indicating +9 open in Germany

Portfolio: 

• Slightly Higher: On gains in my medical sector longs, index hedges and emerging markets shorts

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added them back

• Market Exposure: 25% Net Long