Stocks Slightly Lower into Final Hour on Rising Long-Term Rates, Emerging Markets Debt Angst, Earnings Concerns, Homebuilding/REIT 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) 13.77 -.22%

• Euro/Yen Carry Return Index 148.38 -.29%

• Emerging Markets Currency Volatility(VXY) 9.09 +.44%

• S&P 500 Implied Correlation 51.96 +1.76%

• ISE Sentiment Index 122.0 -.81%

• Total Put/Call .73 -14.12%

• NYSE Arms .81 +10.72% 

Credit Investor Angst:

• North American Investment Grade CDS Index 66.15 -1.95%

• European Financial Sector CDS Index 88.20 -7.46%

• Western Europe Sovereign Debt CDS Index 61.34 -1.06%

• Emerging Market CDS Index 268.64 +.46%

• 2-Year Swap Spread 8.25 +1.5 basis points

• TED Spread 18.5 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -3.75 -1.25 basis points

Economic Gauges:

• 3-Month T-Bill Yield .06% unch.

• Yield Curve 257.0 +2.0 basis points

• China Import Iron Ore Spot $132.70/Metric Tonne -.52%
  

• Citi US Economic Surprise Index 39.10 -5.0 points

• Citi Emerging Markets Economic Surprise Index -13.4 +.9 point

• 10-Year TIPS Spread 2.15 -1 basis point

Overseas Futures:

• Nikkei Futures: Indicating +9 open in Japan

• DAX Futures: Indicating +5 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 50% Net Long