Stocks Lower into Final Hour on Fed Taper Fears, Earnings Worries, Rising Long-Term Rates, Tech/Retail Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 15.41 -.06%

• Euro/Yen Carry Return Index 148.07 +.55%

• Emerging Markets Currency Volatility(VXY) 9.14 +.77%

• S&P 500 Implied Correlation 51.94 -1.22%

• ISE Sentiment Index 146.0 +5.04%

• Total Put/Call .69 -28.12%

• NYSE Arms .74 -50.53% 

Credit Investor Angst:

• North American Investment Grade CDS Index 69.97 -.40%

• European Financial Sector CDS Index 98.21 +3.24%

• Western Europe Sovereign Debt CDS Index 56.17 +.31%

• Emerging Market CDS Index 275.91 -2.39%

• 2-Year Swap Spread 10.0 unch.

• TED Spread 17.75 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap .75 +.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .07% unch.

• Yield Curve 256.0 +3.0 basis points

• China Import Iron Ore Spot $137.90/Metric Tonne -.86%
  

• Citi US Economic Surprise Index 31.70 -2.4 points

• Citi Emerging Markets Economic Surprise Index -15.10 -1.2 points

• 10-Year TIPS Spread 2.14 unch.

Overseas Futures:

• Nikkei Futures: Indicating +280 open in Japan

• DAX Futures: Indicating -3 open in Germany

Portfolio: 

• Slightly Lower: On losses in my retail  sector longs and index hedges

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added them back

• Market Exposure: 25% Net Long