Stocks Dropping into Final Hour on Rising Global Growth Fears, China Credit Crunch, Technical Selling, Homebuilding/REIT Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Every Sector Declining
  

• Volume: Around Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 20.44 +22.8%
• Euro/Yen Carry Return Index 134.32 +.49%
• Emerging Markets Currency Volatility(VXY) 12.0 +8.70%
• S&P 500 Implied Correlation 60.87 +8.81%

• ISE Sentiment Index 42.0 -55.32%

• Total Put/Call 1.31 +20.18%

• NYSE Arms .61 -72.51% 

Credit Investor Angst:

• North American Investment Grade CDS Index 93.80 +9.44%

• European Financial Sector CDS Index 173.57 +13.10%

• Western Europe Sovereign Debt CDS Index 94.0 +4.44%

• Emerging Market CDS Index 378.18 +8.30%

• 2-Year Swap Spread 18.25 +2.25 bps

• TED Spread 23.25 +.75 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -12.50 -.5 bp

Economic Gauges:

• 3-Month T-Bill Yield .04% unch.

• Yield Curve 206.0 +3 bps

• China Import Iron Ore Spot $120.60/Metric Tonne +.5%

• Citi US Economic Surprise Index -12.90 +1.2 points
• Citi Emerging Markets Economic Surprise Index -44.80 +.6 point 

• 10-Year TIPS Spread 1.97 -7 bps

Overseas Futures:

• Nikkei Futures: Indicating -75 open in Japan

• DAX Futures: Indicating -41 open in Germany

Portfolio: 

• Slightly Higher: On gains in my index hedges and emerging markets shorts 
• Disclosed Trades: None
• Market Exposure: 25% Net Long