Stocks Lower into Final Hour on Debt Ceiling Worries, Emerging Markets Debt Angst, Earnings Concerns, Healthcare/Transport Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: About Even
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 14.06 -.14%

• Euro/Yen Carry Return Index 138.88 +.13%

• Emerging Markets Currency Volatility(VXY) 9.97 +1.32%

• S&P 500 Implied Correlation 47.28 -2.09%

• ISE Sentiment Index 86.0 -3.37%

• Total Put/Call .96 +10.34%

• NYSE Arms 1.03 -21.93% 

Credit Investor Angst:

• North American Investment Grade CDS Index 79.51 +.69%

• European Financial Sector CDS Index 136.28 -.63%

• Western Europe Sovereign Debt CDS Index 84.68 -1.53%

• Emerging Market CDS Index 275.22 +.15%

• 2-Year Swap Spread 13.0 -2.25 basis points

• TED Spread 23.25 -.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -4.75 -1.0 basis point

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 228.0 -4 basis points

• China Import Iron Ore Spot $133.80/Metric Tonne +.83%

• Citi US Economic Surprise Index 47.0 +.38 point

• Citi Emerging Markets Economic Surprise Index 5.50 +.4 point

• 10-Year TIPS Spread 2.19 unch.

Overseas Futures:

• Nikkei Futures: Indicating -1 open in Japan

• DAX Futures: Indicating -6 open in Germany

Portfolio: 

• Slightly Lower: On losses in my medical/retail/biotech sector longs 

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 25% Net Long