Stocks Falling into Final Hour on Rising Global Growth Fears, US Fiscal Cliff Worries, Rising Election Uncertainty, Financial/Commodity Sector Weakness

Today's Market Take:

Broad Market Tone:

• Advance/Decline Line: Lower
• Sector Performance: Almost Every Sector Declining
• Volume: Light
• Market Leading Stocks: Underperforming

Equity Investor Angst:

• VIX 15.91 +2.05%
• ISE Sentiment Index 87.0 -30.40%
• Total Put/Call 1.04 +19.54%
• NYSE Arms 1.88 +130.22%

Credit Investor Angst:

• North American Investment Grade CDS Index 97.66 bps +.39%
• European Financial Sector CDS Index 178.29 bps -1.27%
• Western Europe Sovereign Debt CDS Index 133.93 bps -5.14%
• Emerging Market CDS Index 220.76 bps -.96%
• 2-Year Swap Spread 11.25 -.5 basis point
• TED Spread 23.75 -.75 basis point
• 3-Month EUR/USD Cross-Currency Basis Swap -25.0 +.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .10% unch.
• Yield Curve 140.0 unch.
• China Import Iron Ore Spot $114.50/Metric Tonne -1.12%
• Citi US Economic Surprise Index 49.40 +3.7 points
• 10-Year TIPS Spread 2.47 unch.

Overseas Futures:

• Nikkei Futures: Indicating +23 open in Japan
• DAX Futures: Indicating +9 open in Germany

Portfolio:

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