Stocks Falling into Final Hour on China Bubble-Bursting Fears, Fed Rate Hike Worries, Technical Selling, Biotech/Utility Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 28.02 +7.48%

• Euro/Yen Carry Return Index 142.09 +.05%

• Emerging Markets Currency Volatility(VXY) 11.63 +.09%

• S&P 500 Implied Correlation 64.07 +6.78%

• ISE Sentiment Index 108.0 +25.6%

• Total Put/Call 1.21 -5.47%

• NYSE Arms 1.0 -5.32% 

Credit Investor Angst:

• North American Investment Grade CDS Index 81.41 +1.81%

• America Energy Sector High-Yield CDS Index 1,869.0 -.8%

• European Financial Sector CDS Index 81.07 -.28%

• Western Europe Sovereign Debt CDS Index 22.25 -.40%

• Asia Pacific Sovereign Debt CDS Index 81.0 +1.12%

• Emerging Market CDS Index 346.98 +.70%
  

• iBoxx Offshore RMB China Corporates High Yield Index 116.96 +.15%

• 2-Year Swap Spread 15.5 +.5 basis point

• TED Spread 27.25 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -22.25 -1.0 basis point

Economic Gauges:

• 3-Month T-Bill Yield .00% -6.0 basis points

• Yield Curve 147.0 +1.0 basis point

• China Import Iron Ore Spot $56.21/Metric Tonne +.3%

• Citi US Economic Surprise Index -8.2 -7.0 points

• Citi Eurozone Economic Surprise Index 15.2 +1.6 points

• Citi Emerging Markets Economic Surprise Index -13.6 -4.0 points

• 10-Year TIPS Spread 1.63 +2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 4.28 -1.33

Overseas Futures:

• Nikkei 225 Futures: Indicating -50 open in Japan 
• China A50 Futures: Indicating -488 open in China

• DAX Futures: Indicating -21 open in Germany

Portfolio: 

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

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

• Market Exposure: 25% Net Long