Stocks Falling into Final Hour on Rising Eurozone Debt Angst, Earnings Worries, Rising Global Growth Fears, US Fiscal Cliff Concerns

Broad Market Tone:

• Advance/Decline Line: Lower
• Sector Performance: Most Sectors Declining
• Volume: Around Average
• Market Leading Stocks: Underperforming

Equity Investor Angst:

• VIX 15.29 +1.46%
• ISE Sentiment Index 127.0 +2.42%
• Total Put/Call .85 +8.97%
• NYSE Arms .73 -7.54%

Credit Investor Angst:

• North American Investment Grade CDS Index 90.82 bps +1.29%
• European Financial Sector CDS Index 158.48 bps +3.45%
• Western Europe Sovereign Debt CDS Index 105.94 bps +1.10%
• Emerging Market CDS Index 210.14 bps +.31%
• 2-Year Swap Spread 9.75 +.75 basis point
• TED Spread 22.25 +.75 basis point
• 3-Month EUR/USD Cross-Currency Basis Swap -25.25 -1.0 basis point

Economic Gauges:

• 3-Month T-Bill Yield .10% -1 basis point
• Yield Curve 153.0 +2 basis points
• China Import Iron Ore Spot $115.50/Metric Tonne +.09%
• Citi US Economic Surprise Index 53.90 -1.6 points
• 10-Year TIPS Spread 2.52 +4 basis points

Overseas Futures:

• Nikkei Futures: Indicating -10 open in Japan
• DAX Futures: Indicating -19 open in Germany

Portfolio:

• Slightly Lower: On losses in my Medical/Tech/Biotech sector longs
• Disclosed Trades: Added to my (IWM)/(QQQ) hedges
• Market Exposure: Moved to 25% Net Long