Stocks Slightly Lower into Final Hour on Rising Long-Term Rates, Fed Rate Hikes Fears, Profit-Taking, Healthcare/Utility Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 14.24 +1.93%

• Euro/Yen Carry Return Index 144.64 +1.59%

• Emerging Markets Currency Volatility(VXY) 9.51 unch.

• S&P 500 Implied Correlation 60.66 -1.80%

• ISE Sentiment Index 135.0 +35.0%

• Total Put/Call .88 +2.33%

• NYSE Arms .60 -43.65% 

Credit Investor Angst:

• North American Investment Grade CDS Index 63.91 +.32%

• America Energy Sector High-Yield CDS Index 1,146.0 +2.34%

• European Financial Sector CDS Index 74.75 -3.76%

• Western Europe Sovereign Debt CDS Index 24.28 -.45%

• Asia Pacific Sovereign Debt CDS Index 59.61 -.18%

• Emerging Market CDS Index 293.06 -.16%
  

• iBoxx Offshore RMB China Corporates High Yield Index 119.99 -.01%

• 2-Year Swap Spread 23.75 -.25 basis point

• TED Spread 28.25 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -19.0 +1.75 basis points

Economic Gauges:

• 3-Month T-Bill Yield .00% unch.

• Yield Curve 161.0 +6.0 basis points

• China Import Iron Ore Spot $63.02/Metric Tonne +1.89%

• Citi US Economic Surprise Index -53.10 -.6 point

• Citi Eurozone Economic Surprise Index -5.5 +8.4 points

• Citi Emerging Markets Economic Surprise Index -19.90 +1.4 points

• 10-Year TIPS Spread 1.85 +2.0 basis points

Overseas Futures:

• Nikkei 225 Futures: Indicating -107 open in Japan 
• China A50 Futures: Indicating -123 open in China

• DAX Futures: Indicating +9 open in Germany

Portfolio: 

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added them back

• Market Exposure: 50% Net Long