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

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 18.69 +11.65%

• Euro/Yen Carry Return Index 137.18 -.39%

• Emerging Markets Currency Volatility(VXY) 9.77 -.31%

• S&P 500 Implied Correlation 55.87 +12.35%

• ISE Sentiment Index 80.0 -13.04%

• Total Put/Call .90 +3.45%

• NYSE Arms .92 +24.03% 

Credit Investor Angst:

• North American Investment Grade CDS Index 81.95 +2.94%

• European Financial Sector CDS Index 135.88 -.03%

• Western Europe Sovereign Debt CDS Index 79.0 -4.43%

• Emerging Market CDS Index 285.43 -.22%

• 2-Year Swap Spread 12.75 -.5 basis point

• TED Spread 22.25 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -7.0 -1.0 basis point

Economic Gauges:

• 3-Month T-Bill Yield .02% unch.

• Yield Curve 228.0 -4 basis points

• China Import Iron Ore Spot $131.40/Metric Tonne unch.

• Citi US Economic Surprise Index 44.0 -.7 point

• Citi Emerging Markets Economic Surprise Index 2.80 +2.0 points

• 10-Year TIPS Spread 2.21 unch.

Overseas Futures:

• Nikkei Futures: Indicating +32 open in Japan

• DAX Futures: Indicating +2 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long