Stocks Slightly Lower into Final Hour on Rising Emerging Markets Debt Angst, Yen Strength, Higher Long-Term Rates, Healthcare/Homebuilding Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Slightly Lower
  

• Sector Performance: Mixed
  

• Volume: Slightly Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 14.47 -.28%

• Euro/Yen Carry Return Index 145.26 -.50%

• Emerging Markets Currency Volatility(VXY) 8.84 -1.89%

• S&P 500 Implied Correlation 51.95 +1.35%

• ISE Sentiment Index 161.0 +85.06%

• Total Put/Call .85 +1.19%

• NYSE Arms 1.35 +107.23% 

Credit Investor Angst:

• North American Investment Grade CDS Index 65.43 -.25%

• European Financial Sector CDS Index 90.14 +.65%

• Western Europe Sovereign Debt CDS Index 53.28 +.54%
• Asia Pacific Sovereign Debt CDS Index 106.08 -.38%

• Emerging Market CDS Index 322.83 +.59%

• China Blended Corporate Spread Index 356.68 -1.39%
• 2-Year Swap Spread 11.75 -.5 basis point

• TED Spread 20.0 +1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -4.75 -.5 basis point

Economic Gauges:

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

• Yield Curve 242.0 +3.0 basis points

• China Import Iron Ore Spot $121.0/Metric Tonne +.83%

• Citi US Economic Surprise Index 25.90 +.2 point

• Citi Emerging Markets Economic Surprise Index 21.10 +8.0 points

• 10-Year TIPS Spread 2.18 +1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating -35 open in Japan

• DAX Futures: Indicating +4 open in Germany

Portfolio: 

• Slightly Higher: On gains in my tech/medical/biotech sector longs

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

• Market Exposure: Moved to 50% Net Long