Stocks Reversing Lower into Final Hour on Global Growth Fears, Fed Rate Hike Worries, Rising Emerging Markets Debt Angst and Transport/Utilities Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Around Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 12.84 +5.94%

• Euro/Yen Carry Return Index 142.26 +.52%

• Emerging Markets Currency Volatility(VXY) 8.77 +4.53%

• S&P 500 Implied Correlation 60.08 +2.16%

• ISE Sentiment Index 94.0 +2.17%

• Total Put/Call .94 +10.59%

• NYSE Arms 1.15 +19.21% 

Credit Investor Angst:

• North American Investment Grade CDS Index 69.94 +2.18%

• America Energy Sector High-Yield CDS Index 1,600.0 +4.85%

• European Financial Sector CDS Index 69.19-.35%

• Western Europe Sovereign Debt CDS Index 21.80 -2.57%

• Asia Pacific Sovereign Debt CDS Index 59.44 +.73%

• Emerging Market CDS Index 315.57 +3.25%
  

• iBoxx Offshore RMB China Corporates High Yield Index 120.63 +.17%

• 2-Year Swap Spread 25.25 -.25 basis point

• TED Spread 26.25 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -20.0 +.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .04% +1.0 basis point

• Yield Curve 158.0 -4.0 basis points

• China Import Iron Ore Spot $51.72/Metric Tonne -.08%

• Citi US Economic Surprise Index -7.0 +5.3 points

• Citi Eurozone Economic Surprise Index 8.6 -.1 point

• Citi Emerging Markets Economic Surprise Index -9.1 +.8 point

• 10-Year TIPS Spread 1.77 -4.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 5.21 -.03

Overseas Futures:

• Nikkei 225 Futures: Indicating -134 open in Japan 
• China A50 Futures: Indicating -163 open in China

• DAX Futures: Indicating -62 open in Germany

Portfolio: 

• Slightly Higher: On gains in my index hedges and emerging markets shorts

• Disclosed Trades: None

• Market Exposure: 25% Net Long