Stocks Reversing Lower into Afternoon on Global Growth Fears, Political Worries, Earnings Outlook Concerns, Homebuilding/Financial Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 17.99 +1.75%

• Euro/Yen Carry Return Index 142.28 -.06%

• Emerging Markets Currency Volatility(VXY) 11.33 -.53%

• S&P 500 Implied Correlation 64.78 +1.89%

• ISE Sentiment Index 85.0 -5.56%

• Total Put/Call .92 +3.37%

• NYSE Arms .80 -53.86% 

Credit Investor Angst:

• North American Investment Grade CDS Index 84.72 +1.60%

• America Energy Sector High-Yield CDS Index 1,043.0 +4.36%

• European Financial Sector CDS Index 80.96 +2.16%

• Western Europe Sovereign Debt CDS Index 21.06 +5.25%

• Asia Pacific Sovereign Debt CDS Index 80.44 -1.12%

• Emerging Market CDS Index 342.83 -.81%
  

• iBoxx Offshore RMB China Corporates High Yield Index 121.0 +.05%

• 2-Year Swap Spread 11.50 -.5 basis point

• TED Spread 32.0 +.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -21.75 +2.25 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 73.02 +.66%
• 3-Month T-Bill Yield -.01% -1.0 basis point

• Yield Curve 143.0 unch.

• China Import Iron Ore Spot $55.12/Metric Tonne +.27%

• Citi US Economic Surprise Index -26.70 -2.6 points

• Citi Eurozone Economic Surprise Index 6.0 unch.

• Citi Emerging Markets Economic Surprise Index -17.40 -.2 point

• 10-Year TIPS Spread 1.50 -2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 5.78 +.38

Overseas Futures:

• Nikkei 225 Futures: Indicating +2 open in Japan 
• China A50 Futures: Indicating +1 open in China

• DAX Futures: Indicating +7 open in Germany

Portfolio: 

• Slightly Lower: On losses in my retail sector longs and emerging market shorts

• Disclosed Trades: None

• Market Exposure: 25% Net Long