Stocks Falling into Final Hour on Escalating Global Growth Fears, Rising US High-Yield Debt Angst, Earnings Worries, Metals&Mining/Financial Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Around Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 22.52 +9.53%

• Euro/Yen Carry Return Index 144.34 -.48%

• Emerging Markets Currency Volatility(VXY) 10.38 -.29%

• S&P 500 Implied Correlation 66.67 -.61%

• ISE Sentiment Index 89.0 +20.27%

• Total Put/Call 1.15 +29.21%

• NYSE Arms 1.99 +33.57% 

Credit Investor Angst:

• North American Investment Grade CDS Index 72.19 +.97%

• America Energy Sector High-Yield CDS Index 751.0 +2.53%

• European Financial Sector CDS Index 67.72 +.22%

• Western Europe Sovereign Debt CDS Index 27.57 -1.04%

• Asia Pacific Sovereign Debt CDS Index 75.81 +.12%

• Emerging Market CDS Index 388.65 -1.06%

• China Blended Corporate Spread Index 371.05 +1.64%

• 2-Year Swap Spread 22.75 unch.

• TED Spread 23.25 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -14.75 +.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .03% unch.

• Yield Curve 135.0 -1.0 basis point

• China Import Iron Ore Spot $68.30/Metric Tonne -.64%

• Citi US Economic Surprise Index 19.0 -12.0 points

• Citi Eurozone Economic Surprise Index -.2 -.4 point

• Citi Emerging Markets Economic Surprise Index -13.70 +.5 point

• 10-Year TIPS Spread 1.57 +4.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating -10 open in Japan

• DAX Futures: Indicating +35 open in Germany

Portfolio: 

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 50% Net Long