Stocks Reversing Slightly Lower into Final Hour on Surging North American/European Debt Angst, Yen Strength, Global Growth Fears, Biotech/Alt Energy Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 15.09 +3.71%

• Euro/Yen Carry Return Index 143.65 +.13%

• Emerging Markets Currency Volatility(VXY) 7.80 -.13%

• S&P 500 Implied Correlation 53.74 +4.25%

• ISE Sentiment Index 143.0 +81.0%

• Total Put/Call 1.01 +10.99%

• NYSE Arms .80 +11.13% 

Credit Investor Angst:

• North American Investment Grade CDS Index 67.45 +15.19%

• European Financial Sector CDS Index 63.38 +8.28%

• Western Europe Sovereign Debt CDS Index 27.20 +2.76%

• Asia Pacific Sovereign Debt CDS Index 68.84 -1.52%

• Emerging Market CDS Index 260.29 -6.63%

• China Blended Corporate Spread Index 319.36 n/a

• 2-Year Swap Spread 27.75 +2.0 basis points

• TED Spread 22.75 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -10.0 unch.

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 189.0 +1.0 basis point

• China Import Iron Ore Spot $77.50/Metric Tonne n/a

• Citi US Economic Surprise Index 18.20 -.1 point

• Citi Emerging Markets Economic Surprise Index -18.20 +.4 point

• 10-Year TIPS Spread 1.94 unch.

Overseas Futures:

• Nikkei Futures: Indicating -80 open in Japan

• DAX Futures: Indicating -27 open in Germany

Portfolio: 

• Lower: On losses in my biotech/retail sector longs and emerging markets shorts

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

• Market Exposure: Moved to 50% Net Long