Stocks Lower into Final Hour on Rising European/Emerging Markets Debt Angst, Yen Strength, Profit-Taking, Utilities/Biotech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line:  Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Light

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 16.01 +6.31%

• Euro/Yen Carry Return Index 151.72 -.93%

• Emerging Markets Currency Volatility(VXY) 10.85 +.28%

• S&P 500 Implied Correlation 66.79 +2.61%

• ISE Sentiment Index 74.0 +25.42%

• Total Put/Call 1.0 +19.05%

• NYSE Arms 1.14 +36.14% 

Credit Investor Angst:

• North American Investment Grade CDS Index 66.12 +.72% 
• America Energy Sector High-Yield CDS Index 634.0 -.08%

• European Financial Sector CDS Index 66.46 +4.88%

• Western Europe Sovereign Debt CDS Index 27.86 +1.13%
• Asia Pacific Sovereign Debt CDS Index 66.41 +4.39%

• Emerging Market CDS Index 335.45 +1.46%

• China Blended Corporate Spread Index 341.76 +.32%
• 2-Year Swap Spread 20.25 +1.0 basis point

• TED Spread 25.75 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -14.25 +.5 basis point

Economic Gauges:

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

• Yield Curve 150.0 unch.

• China Import Iron Ore Spot $71.15/Metric Tonne +3.55%

• Citi US Economic Surprise Index 38.40 -1.6 points
• Citi Eurozone Economic Surprise Index 9.20 +4.1 points

• Citi Emerging Markets Economic Surprise Index -13.0 +.5 point

• 10-Year TIPS Spread 1.64 -1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating -25 open in Japan

• DAX Futures: Indicating -15 open in Germany

Portfolio: 

• Slightly Lower: On losses in my biotech/tech sector longs 

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

• Market Exposure: Moved to 25% Net Long