Stocks Reversing Sharply Lower into Final Hour on Global Growth Fears, Rising Emerging Markets/US High-Yield Debt Angst, Earnings Worries, Homebuilding/Commodity Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Slightly Above Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 21.58 +9.85%

• Euro/Yen Carry Return Index 144.77 -1.02%

• Emerging Markets Currency Volatility(VXY) 10.41 -.29%

• S&P 500 Implied Correlation 67.34 +2.38%

• ISE Sentiment Index 63.0 -35.05%

• Total Put/Call .85 -19.05%

• NYSE Arms 1.66 +25.01% 

Credit Investor Angst:

• North American Investment Grade CDS Index 71.40 +.76%

• America Energy Sector High-Yield CDS Index 733.0 +3.02%

• European Financial Sector CDS Index 67.53 -2.46%

• Western Europe Sovereign Debt CDS Index 27.86 -.07%

• Asia Pacific Sovereign Debt CDS Index 76.23 +2.03%

• Emerging Market CDS Index 399.02 +1.55%

• China Blended Corporate Spread Index 365.05 -.43%

• 2-Year Swap Spread 22.75 unch.

• TED Spread 23.75 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -15.25 -1.0 basis point

Economic Gauges:

• 3-Month T-Bill Yield .03% +1.0 basis point

• Yield Curve 136.0 unch.

• China Import Iron Ore Spot $68.74/Metric Tonne -2.22%

• Citi US Economic Surprise Index 31.0 +.2 point

• Citi Eurozone Economic Surprise Index .2 +.1 point

• Citi Emerging Markets Economic Surprise Index -14.20 +2.0 points

• 10-Year TIPS Spread 1.53 -4.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating -152 open in Japan

• DAX Futures: Indicating -102 open in Germany

Portfolio: 

• Slightly Lower: On losses in my retail/medical/biotech/tech sector longs

• Disclosed Trades: None

• Market Exposure: 25% Net Long