Stocks Lower into Final Hour on China Bubble-Bursting Fears, Rising 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: Light

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 17.16 +8.96%

• Euro/Yen Carry Return Index 138.03 +.01%

• Emerging Markets Currency Volatility(VXY) 11.25 -.44%

• S&P 500 Implied Correlation 58.29 -1.07%

• ISE Sentiment Index 83.0 -31.97%

• Total Put/Call 1.34 unch.

• NYSE Arms 1.77 -2.41% 

Credit Investor Angst:

• North American Investment Grade CDS Index 91.43 +1.16%

• America Energy Sector High-Yield CDS Index 1,690.0 +2.09%

• European Financial Sector CDS Index 72.06 -.72%

• Western Europe Sovereign Debt CDS Index 17.21 -.52%

• Asia Pacific Sovereign Debt CDS Index 72.09 -.75%

• Emerging Market CDS Index 357.89 +1.80%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.77 +.03%

• 2-Year Swap Spread 12.25 unch.

• TED Spread 40.5 +.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -25.5 +.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 69.68 -.01%
• 3-Month T-Bill Yield .20% +1.0 basis point

• Yield Curve 121.0 -4.0 basis points

• China Import Iron Ore Spot $41.30/Metric Tonne +.73%

• Citi US Economic Surprise Index -31.2 +1.0 point

• Citi Eurozone Economic Surprise Index 13.9 -2.0 points

• Citi Emerging Markets Economic Surprise Index 15.90 -2.0 points

• 10-Year TIPS Spread 1.53% -1.0 basis point
• 56.7% chance of next Fed rate hike at April 27 meeting, 74.2% chance at June 15 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -28 open in Japan 
• China A50 Futures: Indicating -63 open in China

• DAX Futures: Indicating +38 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 50% Net Long