Stocks Lower into Afternoon on Yen Strength, Technical Selling, Small-Cap Underperformance, Biotech/Restaurant Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 14.14 +4.82%

• Euro/Yen Carry Return Index 147.62 -.23%

• Emerging Markets Currency Volatility(VXY) 8.86 -1.34%

• S&P 500 Implied Correlation 50.71 +.32%

• ISE Sentiment Index 87.0 -31.5%

• Total Put/Call .77 -18.09%

• NYSE Arms .78 +37.24% 

Credit Investor Angst:

• North American Investment Grade CDS Index 67.68 +.65%

• European Financial Sector CDS Index 94.98 -1.54%

• Western Europe Sovereign Debt CDS Index 61.18 -.24%

• Emerging Market CDS Index 282.42 -1.80%

• 2-Year Swap Spread 9.0 -.25 basis point

• TED Spread 17.5 -1.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap 2.5 +.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .07% +2.0 basis points

• Yield Curve 250.0 -5.0 basis points

• China Import Iron Ore Spot $139.40/Metric Tonne unch.
  

• Citi US Economic Surprise Index 33.0 unch.

• Citi Emerging Markets Economic Surprise Index -14.70 +.5 point

• 10-Year TIPS Spread 2.11 -2.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating -95 open in Japan

• DAX Futures: Indicating +4 open in Germany

Portfolio: 

• Slightly Higher: On gains in my tech sector longs, index hedges and emerging markets shorts

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

• Market Exposure: Moved to 25% Net Long