Stocks Lower into Afernoon on Rising China Tensions, Higher Long-Term Rates, Technical Selling, 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) 34.6 +2.8%
• Bloomberg Global Risk On/Risk Off Index -230.0 -108.0 points

• Euro/Yen Carry Return Index 130.37 -.02%

• Emerging Markets Currency Volatility(VXY) 11.27 +.45%

• S&P 500 Implied Correlation 52.7 +8.1%

• ISE Sentiment Index 107.0 +19.0 points

• Total Put/Call 1.05 +9.4%

• NYSE Arms .70 -10.3%

Credit Investor Angst:

• North American Investment Grade CDS Index 657.55 +3.32%
  

• US Energy High-Yield OAS 761.92 +.31%

• European Financial Sector CDS Index 60.11 +.84%

• Italian/German 10Y Yld Spread 146.5 +2.25 basis points
  

• Asia Ex-Japan Investment Grade CDS Index  58.24 +2.09%
  

• Emerging Market CDS Index 169.67 +1.90%
  

• iBoxx Offshore RMB China Corporate High Yield Index 177.75 +.07%

• 2-Year Swap Spread 8.75 -1.0 basis point

• TED Spread 14.5 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -5.5 -.25 basis point
  
• MBS  5/10 Treasury Spread  84.5 -4.5 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 50.75 -1.75 basis points
  

• China Iron Ore Spot 123.84 USD/Metric Tonne +.71%

• Citi US Economic Surprise Index 191.80 -1.5 points

• Citi Eurozone Economic Surprise Index 96.60 -3.9 points

• Citi Emerging Markets Economic Surprise Index 15.3 +2.9 points

• 10-Year TIPS Spread 1.68 +2.0 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 -80 open in Japan 
• China A50 Futures: Indicating -60 open in China

• DAX Futures: Indicating +37 open in Germany

Portfolio:

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  

• Market Exposure: Moved to 50% Net Long