Stocks Falling into Final Hour on Global Growth Fears, Emerging Markets/US High-Yield Debt Angst, Fed Rate Hike Worries, Transport/Homebuilding Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Slightly Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 17.43 +10.0%

• Euro/Yen Carry Return Index 140.0 +.23%

• Emerging Markets Currency Volatility(VXY) 10.65 +1.43%

• S&P 500 Implied Correlation 57.38 +2.17%

• ISE Sentiment Index 119.0 +54.55%

• Total Put/Call 1.13 +11.88%

• NYSE Arms 1.55 +40.32% 

Credit Investor Angst:

• North American Investment Grade CDS Index 85.76 +2.92%

• America Energy Sector High-Yield CDS Index 1,515.0 +6.42%

• European Financial Sector CDS Index 70.92 +.23%

• Western Europe Sovereign Debt CDS Index 16.73 -1.65%

• Asia Pacific Sovereign Debt CDS Index 70.98 +1.51%

• Emerging Market CDS Index 348.01 +1.18%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.91 +.02%

• 2-Year Swap Spread 11.50 unch.

• TED Spread 18.75 -6.0 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -31.25 +2.25 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 69.87 -.20%
• 3-Month T-Bill Yield .27% +3.0 basis points

• Yield Curve 129.0 unch.

• China Import Iron Ore Spot $38.65/Metric Tonne -1.05%

• Citi US Economic Surprise Index -23.60 +.7 point

• Citi Eurozone Economic Surprise Index 16.70 unch.

• Citi Emerging Markets Economic Surprise Index 11.0 unch.

• 10-Year TIPS Spread 1.59 +1.0 basis point
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 1.12 -.28

Overseas Futures:

• Nikkei 225 Futures: Indicating -63 open in Japan 
• China A50 Futures: Indicating -237 open in China

• DAX Futures: Indicating -5 open in Germany

Portfolio: 

• Higher: On gains in my biotech/tech sector longs, index hedges and emerging markets shorts

• Disclosed Trades: None

• Market Exposure: 25% Net Long