Stocks Falling Substantially into Final Hour on China Bubble-Bursting Fears, Emerging Markets/US High-Yield Debt Angst, Oil Decline, Commodity/Financial Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Heavy

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 22.55 +6.67%

• Euro/Yen Carry Return Index 142.07 -86%

• Emerging Markets Currency Volatility(VXY) 11.54 -1.79%

• S&P 500 Implied Correlation 64.35 +2.83%

• ISE Sentiment Index 55.0 -26.67%

• Total Put/Call 1.13 +26.97%

• NYSE Arms 3.05 +78.18% 

Credit Investor Angst:

• North American Investment Grade CDS Index 78.24 +1.98%

• America Energy Sector High-Yield CDS Index n/a

• European Financial Sector CDS Index 78.0 +1.64%

• Western Europe Sovereign Debt CDS Index 20.42 -3.27%

• Asia Pacific Sovereign Debt CDS Index 77.80 -.24%

• Emerging Market CDS Index 335.43 +2.20%
  

• iBoxx Offshore RMB China Corporates High Yield Index 119.12 +.17%

• 2-Year Swap Spread 12.75 -1.0 basis point

• TED Spread 33.0 +5.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -23.75 -4.75 basis points

Economic Gauges:

• 3-Month T-Bill Yield -.01% -2.0 basis points

• Yield Curve 146.0 -6.0 basis points

• China Import Iron Ore Spot $57.69/Metric Tonne +.56%

• Citi US Economic Surprise Index -27.4 -.1 point

• Citi Eurozone Economic Surprise Index 14.5 -.8 point

• Citi Emerging Markets Economic Surprise Index -23.7 +.5 point

• 10-Year TIPS Spread 1.56 -3.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 3.23 unch.

Overseas Futures:

• Nikkei 225 Futures: Indicating -205 open in Japan 
• China A50 Futures: Indicating -155 open in China

• DAX Futures: Indicating +13 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long