Stocks Slightly Lower into Final Hour on European Debt Angst, Yen Strength, Profit-Taking, Energy/Biotech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 10.23 +4.28%

• Euro/Yen Carry Return Index 129.35 -.24%

• Emerging Markets Currency Volatility(VXY) 8.10 -.98%

• S&P 500 Implied Correlation 39.62 -1.86%

• ISE Sentiment Index 77.0 -43.4%
  

• Total Put/Call .95 +5.6%

• NYSE Arms 1.06 -9.38%

Credit Investor Angst:

• North American Investment Grade CDS Index 62.31 -1.03%
  

• America Energy Sector High-Yield CDS Index 365.0 -1.44%

• European Financial Sector CDS Index 68.74 +3.09%

• Western Europe Sovereign Debt CDS Index 8.95 +2.9%

• Asia Pacific Sovereign Debt CDS Index 19.29 +.44%

• Emerging Market CDS Index 194.20 +.82%
  

• iBoxx Offshore RMB China Corporate High Yield Index 138.65 +.02%

• 2-Year Swap Spread 23.0 -.5 basis point

• TED Spread 27.25 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -36.50 -1.5 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 72.93 -.07%
• 3-Month T-Bill Yield .92% unch.
  

• Yield Curve 93.0 -2.0 basis points
  

• China Import Iron Ore Spot $58.50/Metric Tonne unch.

• Citi US Economic Surprise Index -37.50 -1.3 points

• Citi Eurozone Economic Surprise Index 48.90 -7.1 points

• Citi Emerging Markets Economic Surprise Index 15.60 -4.1 points

• 10-Year TIPS Spread 1.84 +1.0 basis point
  
• 90.5% chance of Fed rate hike at July 26 meeting, 95.5% chance at Sept. 20 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -33 open in Japan 
• China A50 Futures: Indicating +8 open in China

• DAX Futures: Indicating -9 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 100% Net Long