Stocks Falling into Final Hour on Global Growth Fears, Emerging Markets/US High-Yield Debt Angst, Oil Decline, Commodity/Biotech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Around Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 16.76 +13.17%

• Euro/Yen Carry Return Index 139.73 -.13%

• Emerging Markets Currency Volatility(VXY) 10.48 -1.04%

• S&P 500 Implied Correlation 57.64 +3.25%

• ISE Sentiment Index 76.0 -26.92%

• Total Put/Call 1.01 +13.48%

• NYSE Arms 1.12 +19.50% 

Credit Investor Angst:

• North American Investment Grade CDS Index 83.66 +1.43%

• America Energy Sector High-Yield CDS Index 1,418.0 +5.48%

• European Financial Sector CDS Index 70.68 -1.15%

• Western Europe Sovereign Debt CDS Index 17.01 -4.06%

• Asia Pacific Sovereign Debt CDS Index 69.0 +.80%

• Emerging Market CDS Index 344.85 +2.51%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.89 +.01%

• 2-Year Swap Spread 11.50 +1.50 basis points

• TED Spread 24.75 +1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -33.5 +1.75 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.01 -.81%
• 3-Month T-Bill Yield .24% +3.0 basis points

• Yield Curve 129.0 -4.0 basis points

• China Import Iron Ore Spot $39.06/Metric Tonne -2.42%

• Citi US Economic Surprise Index -24.30 +1.5 points

• Citi Eurozone Economic Surprise Index 16.70 -2.4 points

• Citi Emerging Markets Economic Surprise Index 11.0 -1.1 points

• 10-Year TIPS Spread 1.58 -5.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 1.61 n/a

Overseas Futures:

• Nikkei 225 Futures: Indicating +17 open in Japan 
• China A50 Futures: Indicating -234 open in China

• DAX Futures: Indicating -3 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 25% Net Long