Stocks Reversing Lower into Final Hour on Earnings Worries, Emerging Markets Debt Angst, Technical Selling, Homebuilding/Tech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Above Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 12.60 +.56%

• Euro/Yen Carry Return Index 147.13 -.74%

• Emerging Markets Currency Volatility(VXY) 8.64 -.46%

• S&P 500 Implied Correlation 52.36 +.52%

• ISE Sentiment Index 128.0 -20.50%

• Total Put/Call .72 -7.69%

• NYSE Arms 1.24 -20.11% 

Credit Investor Angst:

• North American Investment Grade CDS Index 65.11 +.25%

• European Financial Sector CDS Index 85.50 +.33%

• Western Europe Sovereign Debt CDS Index 49.68 -.63%

• Emerging Market CDS Index 292.19 +1.42%

• 2-Year Swap Spread 13.25 +.75 basis point

• TED Spread 20.5 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -1.0 -1.5 basis points

Economic Gauges:

• 3-Month T-Bill Yield .03% unch.

• Yield Curve 244.0 -2 basis points

• China Import Iron Ore Spot $127.30/Metric Tonne -.78%

• Citi US Economic Surprise Index 66.60 -2.6 points

• Citi Emerging Markets Economic Surprise Index 4.8 +3.2 points

• 10-Year TIPS Spread 2.24 unch.

Overseas Futures:

• Nikkei Futures: Indicating +39 open in Japan

• DAX Futures: Indicating -30 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long