Stocks Reversing Slightly Lower Midday on Global Growth Fears, Earnings Outlook Worries, Technical Selling, Financial/Homebuilding Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 17.85 +2.47%

• Euro/Yen Carry Return Index 142.93 +1.18%

• Emerging Markets Currency Volatility(VXY) 11.39 n/a

• S&P 500 Implied Correlation 60.09 +1.25%

• ISE Sentiment Index 101.0 -13.68%

• Total Put/Call .90 -2.17%

• NYSE Arms 1.25 +78.72% 

Credit Investor Angst:

• North American Investment Grade CDS Index 81.35 -1.17%

• America Energy Sector High-Yield CDS Index 1,008.0 -1.24%

• European Financial Sector CDS Index 79.76 -3.53%

• Western Europe Sovereign Debt CDS Index 20.92 +5.28%

• Asia Pacific Sovereign Debt CDS Index 79.36 -2.53%

• Emerging Market CDS Index 327.73 -.92%
  

• iBoxx Offshore RMB China Corporates High Yield Index 120.48 +.07%

• 2-Year Swap Spread 12.75 +.5 basis point

• TED Spread 31.75 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -23.0 +1.0 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 73.45 +.72%

• 3-Month T-Bill Yield .00% +1.0 basis point

• Yield Curve 146.0 +2.0 basis points

• China Import Iron Ore Spot $56.01/Metric Tonne +.07%

• Citi US Economic Surprise Index -26.30 +.5 point

• Citi Eurozone Economic Surprise Index 9.0 +.6 point

• Citi Emerging Markets Economic Surprise Index -18.90 -.4 point

• 10-Year TIPS Spread 1.55 -2.0 basis points

• # of Months to 1st Fed Rate Hike(Morgan Stanley) 6.44 n/a

Overseas Futures:

• Nikkei 225 Futures: Indicating -43 open in Japan 

• China A50 Futures: Indicating +8 open in China

• DAX Futures: Indicating -21 open in Germany

Portfolio: 

• Slightly Higher: On gains in my tech/medical sector longs

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

• Market Exposure: Moved to 25% Net Long