Stocks Falling Substantially into Final Hour on Fed Rate Hike Fears, Emerging Markets/US High-Yield Debt Angst, Earnings Worries, Homebuilding/Utility Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Slightly Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 15.59 +11.04%

• Euro/Yen Carry Return Index 136.91 -1.07%

• Emerging Markets Currency Volatility(VXY) 10.38 +2.57%

• S&P 500 Implied Correlation 61.37 +6.41%

• ISE Sentiment Index 59.0 +63.9%

• Total Put/Call 1.22 +28.42%

• NYSE Arms .72 -41.04% 

Credit Investor Angst:

• North American Investment Grade CDS Index 61.77 +2.75%
• America Energy Sector High-Yield CDS Index 690.0 +.65%

• European Financial Sector CDS Index 54.44 +3.27%

• Western Europe Sovereign Debt CDS Index 20.39 -5.14%
• Asia Pacific Sovereign Debt CDS Index 63.01 +1.65%

• Emerging Market CDS Index 389.84 +1.06%

• iBoxx Offshore RMB China Corporates High Yield Index 114.17 +.12%
• 2-Year Swap Spread 25.75 unch.

• TED Spread 25.75 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -24.25 -1.5 basis points

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 152.0 +5.0 basis points

• China Import Iron Ore Spot $59.49/Metric Tonne -.40%

• Citi US Economic Surprise Index -47.50 +7.5 points
• Citi Eurozone Economic Surprise Index 49.3 -.2 point

• Citi Emerging Markets Economic Surprise Index -5.90 unch.

• 10-Year TIPS Spread 1.84 unch.

Overseas Futures:

• Nikkei Futures: Indicating -130 open in Japan

• DAX Futures: Indicating -35 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long