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

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Mixed
  

• Volume: Slightly Above Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 12.95 +.23%

• Euro/Yen Carry Return Index 148.40 -.10%

• Emerging Markets Currency Volatility(VXY) 9.11 -.11%

• S&P 500 Implied Correlation 50.36 +.86%

• ISE Sentiment Index 155.0 +1.31%

• Total Put/Call .72 +1.41%

• NYSE Arms .73 -41.86% 

Credit Investor Angst:

• North American Investment Grade CDS Index 65.19 +1.52%

• European Financial Sector CDS Index 83.87 +3.74%

• Western Europe Sovereign Debt CDS Index 52.0 unch.

• Emerging Market CDS Index 281.20 +2.64%

• 2-Year Swap Spread 11.0 +.75 basis point

• TED Spread 20.0 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -1.25 +.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .04% unch.

• Yield Curve 257.0 +3 basis points

• China Import Iron Ore Spot $131.50/Metric Tonne -1.72%

• Citi US Economic Surprise Index 63.40 +2.4 points

• Citi Emerging Markets Economic Surprise Index 3.10 +1.6 points

• 10-Year TIPS Spread 2.28 +4 basis points

Overseas Futures:

• Nikkei Futures: Indicating -106 open in Japan

• DAX Futures: Indicating +3 open in Germany

Portfolio: 

• Higher: On gains in my biotech/medical sector longs, index hedges and emerging markets shorts

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

• Market Exposure: Moved to 25% Net Long