Stocks Falling into Final Hour on Surging Eurozone Debt Angst, Rising Long-Term Rates, Global Growth Worries, Biotech/Tech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Slightly Above Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 14.19 +10.43%

• Euro/Yen Carry Return Index 140.18 +.19%

• Emerging Markets Currency Volatility(VXY) 10.39 -.86%

• S&P 500 Implied Correlation 66.88 +3.15%

• ISE Sentiment Index 152.0 +67.03%

• Total Put/Call 1.22 +28.42%

• NYSE Arms .81 -2.50% 

Credit Investor Angst:

• North American Investment Grade CDS Index 63.87 +1.67%

• America Energy Sector High-Yield CDS Index 1,083.0 -.32%

• European Financial Sector CDS Index 74.11 +5.25%

• Western Europe Sovereign Debt CDS Index 25.18 +10.73%

• Asia Pacific Sovereign Debt CDS Index 59.80 -.47%

• Emerging Market CDS Index 299.06 -.19%
  

• iBoxx Offshore RMB China Corporates High Yield Index 118.07 +.10%

• 2-Year Swap Spread 26.0 +.25 basis point

• TED Spread 26.50 -1.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -20.5 -.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .01% +1.0 basis point

• Yield Curve 155.0 +2.0 basis points

• China Import Iron Ore Spot $58.70/Metric Tonne +2.0%

• Citi US Economic Surprise Index -65.30 -9.2 points

• Citi Eurozone Economic Surprise Index 5.20 -1.3 points

• Citi Emerging Markets Economic Surprise Index -18.10 +.1 point

• 10-Year TIPS Spread 1.93 +1.0 basis point

Overseas Futures:

• Nikkei Futures: Indicating -132 open in Japan

• DAX Futures: Indicating +9 open in Germany

Portfolio: 

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

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my (EEM) short

• Market Exposure: Moved to 25% Net Long