Stocks Falling into Final Hour on Rising Emerging Markets Debt Angst, Increasing Global Growth Fears, Yen Strength, Consumer Discretionary/Financial 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) 17.58 +11.28%

• Euro/Yen Carry Return Index 145.55 -.83%

• Emerging Markets Currency Volatility(VXY) 10.16 +5.72%

• S&P 500 Implied Correlation 58.13 +4.03%

• ISE Sentiment Index 109.0 -16.15%

• Total Put/Call .90 +13.92%

• NYSE Arms 1.06 +71.31% 

Credit Investor Angst:

• North American Investment Grade CDS Index 72.78 +5.41%

• European Financial Sector CDS Index 101.36 +1.35%

• Western Europe Sovereign Debt CDS Index 53.65 -.65%

• Asia Pacific Sovereign Debt CDS Index 114.19 +1.35%

• Emerging Market CDS Index 337.20 +7.15%

• 2-Year Swap Spread 12.0 -2.5 basis points

• TED Spread 19.50 +.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -4.0 -1.0 basis point

Economic Gauges:

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

• Yield Curve 232.0 -9.0 basis points

• China Import Iron Ore Spot $122.60/Metric Tonne -1.05%

• Citi US Economic Surprise Index 50.70 -1.3 points

• Citi Emerging Markets Economic Surprise Index 10.4 +2.4 points

• 10-Year TIPS Spread 2.14 unch.

Overseas Futures:

• Nikkei Futures: Indicating -398 open in Japan

• DAX Futures: Indicating -51 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long