Stocks Dropping into Final Hour on US Debt Ceiling/Shutdown Concerns, Rising European/Emerging Markets Debt Angst, Technical Selling, Biotech/Tech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Around Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 20.64 +6.34%

• Euro/Yen Carry Return Index 137.18 +.16%

• Emerging Markets Currency Volatility(VXY) 9.53 -1.56%

• S&P 500 Implied Correlation 59.52 +2.94%

• ISE Sentiment Index 132.0 +76.0%

• Total Put/Call .90 +2.27%

• NYSE Arms 1.72 +75.84% 

Credit Investor Angst:

• North American Investment Grade CDS Index 84.04 +1.79%

• European Financial Sector CDS Index 137.78 +1.41%

• Western Europe Sovereign Debt CDS Index 78.0 -1.27%

• Emerging Market CDS Index 290.03 +1.56%

• 2-Year Swap Spread 11.5 -1.25 basis points

• TED Spread 20.25 -2.0 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -10.50 -3.5 basis points

Economic Gauges:

• 3-Month T-Bill Yield .04% +2 basis points

• Yield Curve 225.0 -3 basis points

• China Import Iron Ore Spot $131.70/Metric Tonne +.23%

• Citi US Economic Surprise Index 43.70 -.3 point

• Citi Emerging Markets Economic Surprise Index .70 -2.1 points

• 10-Year TIPS Spread 2.18 -3 basis points

Overseas Futures:

• Nikkei Futures: Indicating -60 open in Japan

• DAX Futures: Indicating -21 open in Germany

Portfolio: 

• Slightly Higher: On gains in my index hedges and emerging markets shorts

• Disclosed Trades: None

• Market Exposure: 25% Net Long