Stocks Reversing Lower into Afternoon on Fed Taper Worries, Rising Eurozone/Emerging Markets Debt Angst, Rising Yen, Transport/Homebuilding Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 14.58 +.27%

• Euro/Yen Carry Return Index 144.69 -.41%

• Emerging Markets Currency Volatility(VXY) 9.13 +1.0%

• S&P 500 Implied Correlation 54.79 +.16%

• ISE Sentiment Index 117.0 +42.68%

• Total Put/Call .85 -1.16%

• NYSE Arms .64 -48.41% 

Credit Investor Angst:

• North American Investment Grade CDS Index 71.19 +1.23%

• European Financial Sector CDS Index 99.54 +1.10%

• Western Europe Sovereign Debt CDS Index 61.63 +2.73%

• Emerging Market CDS Index 303.82 +.59%

• 2-Year Swap Spread 9.75 unch.

• TED Spread 19.0 -1.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -2.75 unch.

Economic Gauges:

• 3-Month T-Bill Yield .05% +1 basis point

• Yield Curve 255.0 +5 basis points

• China Import Iron Ore Spot $139.70/Metric Tonne +1.09%
  

• Citi US Economic Surprise Index 5.30 +.2 point

• Citi Emerging Markets Economic Surprise Index -12.20 -.6 point

• 10-Year TIPS Spread 2.13 -1 basis point

Overseas Futures:

• Nikkei Futures: Indicating -85 open in Japan

• DAX Futures: Indicating -17 open in Germany

Portfolio: 

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

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

• Market Exposure: 25% Net Long