Stocks Reversing Lower into Final Hour on Escalating Global Growth Fears, Rising Emerging Markets Debt Angst, Earnings Worries, Homebuilder/Biotech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Slightly Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 22.42 +4.42%

• Euro/Yen Carry Return Index 141.33 -2.20%

• Emerging Markets Currency Volatility(VXY) 10.97 +5.28%

• S&P 500 Implied Correlation 66.35 +1.84%

• ISE Sentiment Index 60.0 -45.45%

• Total Put/Call .99 -12.39%

• NYSE Arms 1.08 -16.74% 

Credit Investor Angst:

• North American Investment Grade CDS Index 72.39 +1.25%

• America Energy Sector High-Yield CDS Index 726.0 -1.97%

• European Financial Sector CDS Index 67.06 -1.16%

• Western Europe Sovereign Debt CDS Index 26.85 -2.61%

• Asia Pacific Sovereign Debt CDS Index 75.92 +.13%

• Emerging Market CDS Index 387.70 +1.68%

• China Blended Corporate Spread Index 379.40 +2.25%

• 2-Year Swap Spread 23.5 +.75 basis point

• TED Spread 22.75 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -17.75 -3.0 basis points

Economic Gauges:

• 3-Month T-Bill Yield .03% unch.

• Yield Curve 133.0 -2.0 basis points

• China Import Iron Ore Spot $68.63/Metric Tonne +.48%

• Citi US Economic Surprise Index 11.70 -7.3 points

• Citi Eurozone Economic Surprise Index -.6 -.4 point

• Citi Emerging Markets Economic Surprise Index -15.10 -1.4 points

• 10-Year TIPS Spread 1.58 +1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating -183 open in Japan

• DAX Futures: Indicating +14 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long