Stocks Lower into Final Hour on Earnings Concerns, Emerging Markets Debt Angst, Yen Strength, Transport/Retail Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Mixed
  

• Volume: Slightly Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 12.49 +1.71%

• Euro/Yen Carry Return Index 148.15 -.12%

• Emerging Markets Currency Volatility(VXY) 8.71 +.11%

• S&P 500 Implied Correlation 51.52 +1.66%

• ISE Sentiment Index 159.0 +43.24%

• Total Put/Call .77 +2.67%

• NYSE Arms 1.48 +71.04% 

Credit Investor Angst:

• North American Investment Grade CDS Index 64.72 +1.66%

• European Financial Sector CDS Index 85.23 +.78%

• Western Europe Sovereign Debt CDS Index 50.0 unch.

• Emerging Market CDS Index 285.86 +1.51%

• 2-Year Swap Spread 12.5 -.25 basis point

• TED Spread 20.5 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap .5 -.25 basis point

Economic Gauges:

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

• Yield Curve 246.0 -3 basis points

• China Import Iron Ore Spot $128.30/Metric Tonne -1.0%

• Citi US Economic Surprise Index 69.20 -3.5 points

• Citi Emerging Markets Economic Surprise Index 1.6 +1.1 points

• 10-Year TIPS Spread 2.24 -3 basis points

Overseas Futures:

• Nikkei Futures: Indicating -31 open in Japan

• DAX Futures: Indicating +23 open in Germany

Portfolio: 

• Higher: On gains in my biotech/tech sector longs and emerging markets shorts

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

• Market Exposure: Moved to 25% Net Long