Stocks Falling into Final Hour on Global Growth Fears, Rising European/Emerging Markets Debt Angst, Yen Strength, Retail/Financial Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 17.44 +2.53%

• Euro/Yen Carry Return Index 146.51 -.59%

• Emerging Markets Currency Volatility(VXY) 10.34 -2.27%

• S&P 500 Implied Correlation 64.89 +.22%

• ISE Sentiment Index 77.0 -42.11%

• Total Put/Call .94 +13.25%

• NYSE Arms 1.13 +84.14% 

Credit Investor Angst:

• North American Investment Grade CDS Index 69.47 +1.41%
• America Energy Sector High-Yield CDS Index 703.0 -.69%

• European Financial Sector CDS Index 70.81 +5.10%

• Western Europe Sovereign Debt CDS Index 29.o7 +2.05%
• Asia Pacific Sovereign Debt CDS Index 74.46 +5.05%

• Emerging Market CDS Index 378.82 +3.15%

• China Blended Corporate Spread Index 365.50 -1.94%
• 2-Year Swap Spread 23.50 unch.

• TED Spread 23.25 +.25 basis point

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

Economic Gauges:

• 3-Month T-Bill Yield .02% unch.

• Yield Curve 140.0 -1.0 basis point

• China Import Iron Ore Spot $71.18/Metric Tonne -.25%

• Citi US Economic Surprise Index 30.70 +2.2 points
• Citi Eurozone Economic Surprise Index .8 -2.2 points

• Citi Emerging Markets Economic Surprise Index -16.90 -2.4 points

• 10-Year TIPS Spread 1.62 -1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating -202 open in Japan

• DAX Futures: Indicating +19 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long