Stocks Falling Substantially into Final Hour on Fed Rate Hike Concerns, Earnings Worries, Rising European/Emerging Markets/US High-Yield Debt Angst, Tech/Financial Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 16.61 +10.29%

• Euro/Yen Carry Return Index 135.29 -1.49%

• Emerging Markets Currency Volatility(VXY) 10.70 +1.04%

• S&P 500 Implied Correlation 60.77 +2.34%

• ISE Sentiment Index 86.0 +14.67%

• Total Put/Call 1.07 -3.60%

• NYSE Arms 2.39 +103.88% 

Credit Investor Angst:

• North American Investment Grade CDS Index 64.80 +1.89%
• America Energy Sector High-Yield CDS Index 709.0 +2.15%

• European Financial Sector CDS Index 57.53 +.94%

• Western Europe Sovereign Debt CDS Index 20.10 -.64%
• Asia Pacific Sovereign Debt CDS Index 67.32 +3.23%

• Emerging Market CDS Index 412.90 +2.11%

• iBoxx Offshore RMB China Corporates High Yield Index 113.86 +.01%
• 2-Year Swap Spread 27.25 +.25 basis point

• TED Spread 26.0 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -23.5 unch.

Economic Gauges:

• 3-Month T-Bill Yield .01% unch.

• Yield Curve 145.0 -5.0 basis points

• China Import Iron Ore Spot $58.15/Metric Tonne -.73%

• Citi US Economic Surprise Index -50.10 -1.1 points
• Citi Eurozone Economic Surprise Index 47.1 -2.4 points

• Citi Emerging Markets Economic Surprise Index 12.30 +.1 point

• 10-Year TIPS Spread 1.74 -3.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating -110 open in Japan

• DAX Futures: Indicating +9 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long