Stocks Reversing Lower into Final Hour on Surging Eurozone Debt Angst, Global Growth Fears, Technical Selling, Commodity/Financial Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most sectors declining
  

• Volume: Slightly Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 18.44 +7.08%

• Euro/Yen Carry Return Index 139.10 -.67%

• Emerging Markets Currency Volatility(VXY) 9.74 -3.37%

• S&P 500 Implied Correlation 67.66 +2.05%

• ISE Sentiment Index 93.0 -12.28%

• Total Put/Call .95 -12.04%

• NYSE Arms 1.91 +37.80% 

Credit Investor Angst:

• North American Investment Grade CDS Index 67.75 +1.22%
• America Energy Sector High-Yield CDS Index 737.0 +.06%

• European Financial Sector CDS Index 64.06 +6.96%

• Western Europe Sovereign Debt CDS Index 24.65 +4.18%
• Asia Pacific Sovereign Debt CDS Index 68.47 -2.89%

• Emerging Market CDS Index 398.02 +1.33%

• iBoxx Offshore RMB China Corporates High Yield Index 112.88 +.53%
• 2-Year Swap Spread 25.25 +.25 basis point

• TED Spread 24.0 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -12.5 -.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .02% unch.

• Yield Curve 124.0 -7.0 basis points

• China Import Iron Ore Spot $63.09/Metric Tonne -.65%

• Citi US Economic Surprise Index -4.0 -.3 point
• Citi Eurozone Economic Surprise Index 1.60 +1.6 points

• Citi Emerging Markets Economic Surprise Index -7.40 +3.6 points

• 10-Year TIPS Spread 1.61 -4.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating -115 open in Japan

• DAX Futures: Indicating -35 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long