Stocks Reversing Lower into Final Hour on Surging Eurozone/Emerging Markets Debt Angst, Fed Rate Hike Worries, Global Growth Fears, Homebuilding/Transport 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) 19.47 +3.78%

• Euro/Yen Carry Return Index 138.72 -.81%

• Emerging Markets Currency Volatility(VXY) 10.99 +6.29%

• S&P 500 Implied Correlation 65.70 -1.22%

• ISE Sentiment Index 90.0 +25.0%

• Total Put/Call 1.07 -5.31%

• NYSE Arms .92 -28.63% 

Credit Investor Angst:

• North American Investment Grade CDS Index 69.14 +1.98%
• America Energy Sector High-Yield CDS Index 761.0 +.74%

• European Financial Sector CDS Index 68.07 +5.84%

• Western Europe Sovereign Debt CDS Index 25.17 -1.10%
• Asia Pacific Sovereign Debt CDS Index 70.22 +1.78%

• Emerging Market CDS Index 403.62 +1.72%

• iBoxx Offshore RMB China Corporates High Yield Index 113.48 +.41%
• 2-Year Swap Spread 24.0 +1.25 basis points

• TED Spread 24.5 +.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -13.75 +.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 120.0 -4.0 basis points

• China Import Iron Ore Spot $62.21/Metric Tonne -1.68%

• Citi US Economic Surprise Index -4.0 -5.1 points
• Citi Eurozone Economic Surprise Index 10.0 +12.3 points

• Citi Emerging Markets Economic Surprise Index -4.80 +1.6 points

• 10-Year TIPS Spread 1.64 +1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating -45 open in Japan

• DAX Futures: Indicating +5 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 and took some profits in my biotech longs

• Market Exposure: Moved to 25% Net Long