Stocks Falling into Final Hour on Global Growth Fears, Valuation Worries, Surging Yen, Energy/Retail Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Above Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 13.18 +8.57%

• Euro/Yen Carry Return Index 146.69 -1.22%

• Emerging Markets Currency Volatility(VXY) 8.42 -.71%

• S&P 500 Implied Correlation 51.23 +4.67%

• ISE Sentiment Index 111.0 +4.72%

• Total Put/Call .69 -8.0%

• NYSE Arms 1.67 +40.0% 

Credit Investor Angst:

• North American Investment Grade CDS Index 66.04 +3.26%

• European Financial Sector CDS Index 87.33 +1.55%

• Western Europe Sovereign Debt CDS Index 51.0 +2.0%

• Emerging Market CDS Index 284.35 +1.57%

• 2-Year Swap Spread 11.75 -.25 basis point

• TED Spread 21.25 +.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -2.75 -1.0 basis points

Economic Gauges:

• 3-Month T-Bill Yield .03% -1 basis point

• Yield Curve 247.0 -2 basis points

• China Import Iron Ore Spot $130.90/Metric Tonne +.15%

• Citi US Economic Surprise Index 66.10 +.6 point

• Citi Emerging Markets Economic Surprise Index .1 +1.0 point

• 10-Year TIPS Spread 2.26 -1 basis point

Overseas Futures:

• Nikkei Futures: Indicating -412 open in Japan

• DAX Futures: Indicating -70 open in Germany

Portfolio: 

• Slightly Lower: On losses in my retail/biotech/medical/tech sector longs

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges, added (VXX) long, took some profits in retail sector longs

• Market Exposure: Moved to 25% Net Long