Stocks Falling Substantially into Afternoon on Global Recession Fears, US Election Uncertainty, Profit-Taking, Tech/Alt Energy Sector Weakness

 Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 32.5 +22.7%
• Bloomberg Global Risk On/Risk Off Index -79.0 -460.0 points

• Euro/Yen Carry Return Index 130.23 -.16%

• Emerging Markets Currency Volatility(VXY) 11.3 unch.

• S&P 500 Implied Correlation 48.68 +12.3%

• ISE Sentiment Index 88.0 -28.0 points

• Total Put/Call 1.0 +37.0%

• NYSE Arms .64 -21.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 65.02 +4.66%
  

• US Energy High-Yield OAS 760.08 +.64%

• European Financial Sector CDS Index 59.44 +5.16%

• Italian/German 10Y Yld Spread 144.25 -1.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index  57.04 -.87%
  

• Emerging Market CDS Index 167.08 +5.53%
  

• iBoxx Offshore RMB China Corporate High Yield Index 177.62 +.06%

• 2-Year Swap Spread 9.75 +.5 basis point

• TED Spread 15.0 +1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -5.25 +.25 basis point
  
• MBS  5/10 Treasury Spread  89.0 +1.5 basis points
  
• IHS Markit CMBX BBB- 6 68.25 unch.

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 60.62 -.17%
• 3-Month T-Bill Yield .10% unch.

• Yield Curve 52.5 -2.75 basis points
  

• China Iron Ore Spot 121.52 USD/Metric Tonne -1.23%

• Citi US Economic Surprise Index 193.30 -.1 point

• Citi Eurozone Economic Surprise Index 100.50 -6.9 points

• Citi Emerging Markets Economic Surprise Index 13.4 +3.2 points

• 10-Year TIPS Spread 1.66 -7.0 basis points
• 100.0% chance of no change at Nov. 5th meeting, 100.0% chance of no change at Dec. 16th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -390 open in Japan 
• China A50 Futures: Indicating -171 open in China

• DAX Futures: Indicating -67 open in Germany

Portfolio:

• Lower: On losses in my tech/industrial/biotech/medical/consumer staple sector longs
  

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my emerging market shorts
  

• Market Exposure: Moved to 25% Net Long