Stocks Reversing Lower into Final Hour on Rising Long-Term Rates, Emerging Markets Debt Angst, Technical Selling, Biotech/Retail Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Light

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 12.54 +1.70%

• Euro/Yen Carry Return Index 150.62 +.62%

• Emerging Markets Currency Volatility(VXY) 9.26 +2.32%

• S&P 500 Implied Correlation 49.25 -1.79%

• ISE Sentiment Index 90.0 -34.78%

• Total Put/Call .69 +7.81%

• NYSE Arms .53 -9.68% 

Credit Investor Angst:

• North American Investment Grade CDS Index 63.22 +2.05%

• European Financial Sector CDS Index 85.53 +.34%

• Western Europe Sovereign Debt CDS Index 60.55 -.34%

• Emerging Market CDS Index 273.76 +2.4%

• 2-Year Swap Spread 9.5 -.25 basis point

• TED Spread 18.50 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -1.5 +6.5 basis points

Economic Gauges:

• 3-Month T-Bill Yield .06% unch.

• Yield Curve 261.0 +3.0 basis points

• China Import Iron Ore Spot $134.0/Metric Tonne +1.44%
  

• Citi US Economic Surprise Index 49.4 unch.

• Citi Emerging Markets Economic Surprise Index -9.0 +.7 point

• 10-Year TIPS Spread 2.20 unch.

Overseas Futures:

• Nikkei Futures: Indicating +152 open in Japan

• DAX Futures: Indicating +9 open in Germany

Portfolio: 

• Slightly Lower: On losses in my biotech/tech sector longs and emerging markets shorts

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

• Market Exposure: Moved to 25% Net Long