Stocks Modestly Lower into Final Hour on Global Growth Fears, European/US High-Yield Debt Angst, Oil Decline, Homebuilding/Energy Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 15.91 +1.92%

• Euro/Yen Carry Return Index 134.31 +.31%

• Emerging Markets Currency Volatility(VXY) 10.76 -1.37%

• S&P 500 Implied Correlation 60.04 +1.16%

• ISE Sentiment Index 78.0 +8.33%

• Total Put/Call 1.02 +2.0%

• NYSE Arms 1.09 +114.87% 

Credit Investor Angst:

• North American Investment Grade CDS Index 65.44 +.36%
• America Energy Sector High-Yield CDS Index 781.0 +3.65%

• European Financial Sector CDS Index 56.86 +1.89%

• Western Europe Sovereign Debt CDS Index 21.75 +4.42%
• Asia Pacific Sovereign Debt CDS Index 66.10 -.14%

• Emerging Market CDS Index 421.38 +.28%

• iBoxx Offshore RMB China Corporates High Yield Index 113.93 -.07%
• 2-Year Swap Spread 27.0 unch.

• TED Spread 23.50 -1.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -20.25 unch.

Economic Gauges:

• 3-Month T-Bill Yield .05% +2.0 basis points

• Yield Curve 139.0 -6.0 basis points

• China Import Iron Ore Spot $56.95/Metric Tonne -3.31%

• Citi US Economic Surprise Index -72.0 -8.2 points
• Citi Eurozone Economic Surprise Index 40.80 +1.2 points

• Citi Emerging Markets Economic Surprise Index 2.30 -1.5 points

• 10-Year TIPS Spread 1.65 -1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating -38 open in Japan

• DAX Futures: Indicating +22 open in Germany

Portfolio: 

• Higher: On gains in my biotech/retail/tech sector longs 

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 75% Net Long