Stocks Falling into Final Hour on Rising Emerging Markets/European Debt Angst, Global Growth Fears, Yen Strength, Homebuilding/Tranport Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Every Sector Declining
  

• Volume: Above Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 17.06 +23.89%

• Euro/Yen Carry Return Index 145.93 -1.13%

• Emerging Markets Currency Volatility(VXY) 9.77 +6.78%

• S&P 500 Implied Correlation 55.95 +7.19%

• ISE Sentiment Index 84.0 -14.29%

• Total Put/Call .92 +5.75%

• NYSE Arms 1.31 -13.89% 

Credit Investor Angst:

• North American Investment Grade CDS Index 72.58 +7.06%

• European Financial Sector CDS Index 104.55 +10.48%

• Western Europe Sovereign Debt CDS Index 53.33 +6.66%
• Asia-Pacific Sovereign Debt CDS Index 119.0 +5.01%

• Emerging Market CDS Index 337.90 +5.54%

• 2-Year Swap Spread 15.0 +.75 basis point

• TED Spread 20.0 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -4.0 -1.5 basis points

Economic Gauges:

• 3-Month T-Bill Yield .04% unch.

• Yield Curve 239.0 -2.0 basis points

• China Import Iron Ore Spot $124.30/Metric Tonne +.32%

• Citi US Economic Surprise Index 62.60 +.1 point

• Citi Emerging Markets Economic Surprise Index 6.7 +1.5 points

• 10-Year TIPS Spread 2.13 -9.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating -391 open in Japan

• DAX Futures: Indicating -6 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 25% Net Long