Stocks Slightly Lower into Final Hour on Rising Long-Term Rates, Profit-Taking, Technical Selling, Homebuilding/Financial Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Slightly Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 13.21 -2.80%

• Euro/Yen Carry Return Index 140.24 +1.56%

• Emerging Markets Currency Volatility(VXY) 9.77 -1.61%

• S&P 500 Implied Correlation 48.09 -.17%

• ISE Sentiment Index 113.0 +3.67%

• Total Put/Call .75 -9.64%

• NYSE Arms 1.39 +76.88% 

Credit Investor Angst:

• North American Investment Grade CDS Index 69.79 +.42%

• European Financial Sector CDS Index 125.17 -4.66%

• Western Europe Sovereign Debt CDS Index 88.0 -1.46%

• Emerging Market CDS Index 271.92 +3.02%

• 2-Year Swap Spread 16.0 +.75 basis point

• TED Spread 25.0 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -6.75 +1.25 basis points

Economic Gauges:

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

• Yield Curve 242.0 +5 basis points

• China Import Iron Ore Spot $131.80/Metric Tonne +.08%

• Citi US Economic Surprise Index 44.40 +5.2 points

• Citi Emerging Markets Economic Surprise Index 1.30 +.2 point

• 10-Year TIPS Spread 2.22 +1 basis point

Overseas Futures:

• Nikkei Futures: Indicating +154 open in Japan

• DAX Futures: Indicating -11 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 50% Net Long