Stocks Falling into Final Hour on Rising Emerging Markets Debt Angst, Increasing Global Growth Fears, Yen Strength, Financial/Commodity Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Above Average

• Market Leading Stocks: Performing In  Line

Equity Investor Angst:

• Volatility(VIX) 14.21 +10.7%

• Euro/Yen Carry Return Index 147.33 -.23%

• Emerging Markets Currency Volatility(VXY) 9.15 +5.54%

• S&P 500 Implied Correlation 52.90 +1.24%

• ISE Sentiment Index 96.0 -28.29%

• Total Put/Call .86 +6.17%

• NYSE Arms 1.60 +25.03% 

Credit Investor Angst:

• North American Investment Grade CDS Index 68.03 +3.78%

• European Financial Sector CDS Index 92.99 +5.20%

• Western Europe Sovereign Debt CDS Index 50.0 +4.17%

• Emerging Market CDS Index 320.0 +5.4%

• 2-Year Swap Spread 14.25 +.25 basis point

• TED Spread 20.25 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -2.50 -.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .04% +1.0 basis point

• Yield Curve 241.0 -5.0 basis points

• China Import Iron Ore Spot $123.90/Metric Tonne +.32%

• Citi US Economic Surprise Index 62.50 -.9 point

• Citi Emerging Markets Economic Surprise Index 5.2 +.4 point

• 10-Year TIPS Spread 2.22 -3.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating -361 open in Japan

• DAX Futures: Indicating +9 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long