Stocks Falling into Final Hour on Rising Taper Fears, Yen Strength, Technical Selling, Homebuilding/Biotech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Every Sector Declining
  

• Volume: Slightly Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 14.84 +6.69%

• Euro/Yen Carry Return Index 147.50 -.04%

• Emerging Markets Currency Volatility(VXY) 9.03 +1.69%

• S&P 500 Implied Correlation 52.15 +1.84%

• ISE Sentiment Index 149.0 +13.74%

• Total Put/Call .97 +29.33%

• NYSE Arms 1.40 +25.36% 

Credit Investor Angst:

• North American Investment Grade CDS Index 69.42 +2.44%

• European Financial Sector CDS Index 96.50 +1.69%

• Western Europe Sovereign Debt CDS Index 56.0 -8.47%

• Emerging Market CDS Index 282.31 +.12%

• 2-Year Swap Spread 10.0 +1.0 basis point

• TED Spread 17.75 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap .5 -2.0 basis points

Economic Gauges:

• 3-Month T-Bill Yield .07% unch.

• Yield Curve 253.0 +3.0 basis points

• China Import Iron Ore Spot $139.10/Metric Tonne -.22%
  

• Citi US Economic Surprise Index 34.10 +1.1 points

• Citi Emerging Markets Economic Surprise Index -13.80 +.9 point

• 10-Year TIPS Spread 2.14 +3.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating -155 open in Japan

• DAX Futures: Indicating -15 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 25% Net Long