Stocks Reversing Lower into Final Hour on Rising Emerging Markets/European Debt Angst, Global Growth Worries, Technical Selling, Tech/Alt Energy Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 13.29 +4.98%

• Euro/Yen Carry Return Index 143.38 +.44%

• Emerging Markets Currency Volatility(VXY) 6.97 +5.13%

• S&P 500 Implied Correlation 49.53 +3.45%

• ISE Sentiment Index 82.0 -21.90%

• Total Put/Call .87 -1.14%

• NYSE Arms 1.14 -18.05% 

Credit Investor Angst:

• North American Investment Grade CDS Index 58.82 +3.42%

• European Financial Sector CDS Index 58.84 +2.22%

• Western Europe Sovereign Debt CDS Index 27.87 +4.21%

• Asia Pacific Sovereign Debt CDS Index 62.94 +1.10%

• Emerging Market CDS Index 247.40 +2.85%

• China Blended Corporate Spread Index 307.0 +.65%

• 2-Year Swap Spread 21.75 -.25 basis point

• TED Spread 22.25 +1.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -16.0 +2.75 basis points

Economic Gauges:

• 3-Month T-Bill Yield .01% -1.0 basis point

• Yield Curve 194.0 -1.0 basis point

• China Import Iron Ore Spot $83.20/Metric Tonne -.48%

• Citi US Economic Surprise Index 38.50 +.5 point

• Citi Emerging Markets Economic Surprise Index -11.70 +.5 basis point

• 10-Year TIPS Spread 2.12 -2.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating -101 open in Japan

• DAX Futures: Indicating -23 open in Germany

Portfolio: 

• Higher: On gains in my medical sector longs and emerging markets shorts

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my emerging markets shorts

• Market Exposure: Moved to 25% Net Long