Stocks Reversing Lower into Final Hour on Fed Rate Hike Fears, Emerging Markets/US High-Yield Debt Angst, Emerging Markets Currency Worries, Utility/Commodity Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 14.74 -2.06%

• Euro/Yen Carry Return Index 138.25 -.12%

• Emerging Markets Currency Volatility(VXY) 10.81 +1.60%

• S&P 500 Implied Correlation 56.17 -1.94%

• ISE Sentiment Index 94.0 -9.62%

• Total Put/Call 1.03 -1.90%

• NYSE Arms .81 -28.61% 

Credit Investor Angst:

• North American Investment Grade CDS Index 79.29 +1.55%

• America Energy Sector High-Yield CDS Index 1,125.0 +.34%

• European Financial Sector CDS Index 68.25 -.71%

• Western Europe Sovereign Debt CDS Index 18.45 +4.24%

• Asia Pacific Sovereign Debt CDS Index 70.79 +2.34%

• Emerging Market CDS Index 315.74 +2.85%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.41 +.06%

• 2-Year Swap Spread 9.0 +2.0 basis points

• TED Spread 29.5 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -35.25 -2.25 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 71.17 -.98%
• 3-Month T-Bill Yield .08% +4.0 basis points

• Yield Curve 144.0 +3.0 basis points

• China Import Iron Ore Spot $48.21/Metric Tonne -1.03%

• Citi US Economic Surprise Index 0.0 +8.4 points

• Citi Eurozone Economic Surprise Index 22.1 -5.6 points

• Citi Emerging Markets Economic Surprise Index -4.5 +2.0 points

• 10-Year TIPS Spread 1.59 +4.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 3.51 n/a

Overseas Futures:

• Nikkei 225 Futures: Indicating +185 open in Japan 
• China A50 Futures: Indicating -143 open in China

• DAX Futures: Indicating +17 open in Germany

Portfolio: 

• Slightly Higher: On gains in my tech sector longs and emerging markets shorts

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

• Market Exposure: Moved to 25% Net Long