Stocks Slightly Lower into Final Hour on Earnings Outlook Fears, Rising US High-Yield Debt Angst, Oil Decline, Healthcare/Energy Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Slightly Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 17.09 +1.42%

• Euro/Yen Carry Return Index 137.77 +.11%

• Emerging Markets Currency Volatility(VXY) 10.33 -1.62%

• S&P 500 Implied Correlation 56.45 +3.11%

• ISE Sentiment Index 96.0 +3.23%

• Total Put/Call .89 -11.0%

• NYSE Arms 1.11 +197.94% 

Credit Investor Angst:

• North American Investment Grade CDS Index 84.20 +2.59%

• America Energy Sector High-Yield CDS Index 1,252.0 +.95%

• European Financial Sector CDS Index 70.50 +1.92%

• Western Europe Sovereign Debt CDS Index 19.36 -3.01%

• Asia Pacific Sovereign Debt CDS Index 67.44 -.80%

• Emerging Market CDS Index 314.94 -.61%
  

• iBoxx Offshore RMB China Corporate High Yield Index 124.0 +.02%

• 2-Year Swap Spread 5.75 -2.25 basis points

• TED Spread 24.5 +1.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -44.25 +.5 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 71.07 +.68%
• 3-Month T-Bill Yield .09% -3.0 basis points

• Yield Curve 135.0 -4.0 basis points

• China Import Iron Ore Spot $45.44/Metric Tonne -1.96%

• Citi US Economic Surprise Index -8.6 +.4 point

• Citi Eurozone Economic Surprise Index 24.6 -.4 points

• Citi Emerging Markets Economic Surprise Index 0.0 -1.4 points

• 10-Year TIPS Spread 1.61 +2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 2.70 -.22

Overseas Futures:

• Nikkei 225 Futures: Indicating +8 open in Japan 
• China A50 Futures: Indicating -50 open in China

• DAX Futures: Indicating -12 open in Germany

Portfolio: 

• Lower: On losses in my medical/biotech/retail sector longs and emerging market shorts

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

• Market Exposure: Moved to 25% Net Long