Stocks Reversing Sharply Lower into Final Hour on Global Recession Fears, Oil Decline, Technical Selling, Energy/Tech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 28.6 -.8%
• Bloomberg Global Risk On/Risk Off Index 138.0 +31.0 points

• Euro/Yen Carry Return Index 130.35 +.39%

• Emerging Markets Currency Volatility(VXY) 11.33 -1.13%

• S&P 500 Implied Correlation 52.9 +7.0%

• ISE Sentiment Index 80.0 -32.0 points

• Total Put/Call .73 -12.0%

• NYSE Arms 1.58 +46.3%

Credit Investor Angst:

• North American Investment Grade CDS Index 67.87 +1.89%
  

• US Energy High-Yield OAS 802.58 +.92%

• European Financial Sector CDS Index 63.81 +3.44%

• Italian/German 10Y Yld Spread 147.5 -3.75 basis points
  

• Asia Ex-Japan Investment Grade CDS Index  58.83 -2.36%
  

• Emerging Market CDS Index 170.50 +1.16%
  

• iBoxx Offshore RMB China Corporate High Yield Index 177.86 unch.

• 2-Year Swap Spread 8.25 -.25 basis point

• TED Spread 13.75 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -5.5 -.25 basis point
  
• MBS  5/10 Treasury Spread  90.0 +.75 basis point
  
• IHS Markit CMBX BBB- 6 67.0 -1.25 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 60.50 -.10%
• 3-Month T-Bill Yield .11% unch.

• Yield Curve 54.0 +1.25 basis points
  

• China Iron Ore Spot 120.31 USD/Metric Tonne -.47%

• Citi US Economic Surprise Index 179.90 -3.2 points

• Citi Eurozone Economic Surprise Index 92.60 -1.1 points

• Citi Emerging Markets Economic Surprise Index 35.4 +6.1 points

• 10-Year TIPS Spread 1.70 -1.0 basis point
• 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 +59 open in Japan 
• China A50 Futures: Indicating -127 open in China

• DAX Futures: Indicating -104 open in Germany

Portfolio:

• Slightly Higher: On gains in my index hedges and emerging market shorts
  

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

• Market Exposure: Moved to 25% Net Long