Stocks Slightly Lower into Final Hour on Yen Strength, Fed Taper Concerns, Earnings Worries, Financial/Transport Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 15.96 -.44%

• Euro/Yen Carry Return Index 147.31 -.36%

• Emerging Markets Currency Volatility(VXY) 9.12 +.55%

• S&P 500 Implied Correlation 53.69 -.04%

• ISE Sentiment Index 126.0 -32.68%

• Total Put/Call .91 +15.19%

• NYSE Arms 1.0 +39.43% 

Credit Investor Angst:

• North American Investment Grade CDS Index 69.88 +.73%

• European Financial Sector CDS Index 96.20 +.03%

• Western Europe Sovereign Debt CDS Index 63.0 +9.1%

• Emerging Market CDS Index 272.15 -1.25%

• 2-Year Swap Spread 8.25 -1.25 basis points

• TED Spread 18.25 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap .25 -.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .06% unch.

• Yield Curve 252.0 -3.0 basis points

• China Import Iron Ore Spot $134.30/Metric Tonne -.44%
  

• Citi US Economic Surprise Index 45.20 +9.8 points

• Citi Emerging Markets Economic Surprise Index -16.8 -1.5 points

• 10-Year TIPS Spread 2.18 unch.

Overseas Futures:

• Nikkei Futures: Indicating +75 open in Japan

• DAX Futures: Indicating +23 open in Germany

Portfolio: 

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

• Disclosed Trades: Added to my (IWM)/(QQQ) hedge, then covered some of them

• Market Exposure: 50% Net Long