Stocks Lower into Final Hour on Global Growth Fears, Emerging Markets/US High-Yield Debt Angst, Earnings Outlook Worries, Biotech/Transport Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 17.3 +6.99%

• Euro/Yen Carry Return Index 142.48 +.02%

• Emerging Markets Currency Volatility(VXY) 11.32 +1.98%

• S&P 500 Implied Correlation 62.46 +3.98%

• ISE Sentiment Index 105.0 -11.02%

• Total Put/Call .84 -8.7%

• NYSE Arms 1.75 -5.43% 

Credit Investor Angst:

• North American Investment Grade CDS Index 81.24 +2.64%

• America Energy Sector High-Yield CDS Index 1,014.0 +1.55%

• European Financial Sector CDS Index 79.25 +1.60%

• Western Europe Sovereign Debt CDS Index 20.01 -2.72%

• Asia Pacific Sovereign Debt CDS Index 81.32 +3.09%

• Emerging Market CDS Index 341.22 +3.19%
  

• iBoxx Offshore RMB China Corporates High Yield Index 120.94 +.19%

• 2-Year Swap Spread 12.0 -.75 basis point

• TED Spread 31.5 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -24.0 -1.25 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 72.64 -.90%
• 3-Month T-Bill Yield .00% unch.

• Yield Curve 143.0 -2.0 basis points

• China Import Iron Ore Spot $54.97/Metric Tonne -2.90%

• Citi US Economic Surprise Index -24.10 +.2 point

• Citi Eurozone Economic Surprise Index 6.0 -2.7 points

• Citi Emerging Markets Economic Surprise Index -17.20 +1.6 points

• 10-Year TIPS Spread 1.52 -1.0 basis point
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 5.40 unch.

Overseas Futures:

• Nikkei 225 Futures: Indicating -8 open in Japan 
• China A50 Futures: Indicating -23 open in China

• DAX Futures: Indicating -32 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long