Stocks Reversing Lower into Final Hour on Rising Global Growth Fears, US Fiscal Cliff Worries, Earnings Concerns, Tech/Transport Sector Weakness

Broad Market Tone:

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

Equity Investor Angst:

• VIX 18.62 -1.12%
• ISE Sentiment Index 77.0 -4.94%
• Total Put/Call .89 -16.04%
• NYSE Arms 1.39 -47.38%

Credit Investor Angst:

• North American Investment Grade CDS Index 98.25 bps +1.44%
• European Financial Sector CDS Index 170.64 bps -.51%
• Western Europe Sovereign Debt CDS Index 108.04 bps -.30%
• Emerging Market CDS Index 212.49 bps unch.
• 2-Year Swap Spread 9.5 -1.25 basis points
• TED Spread 20.75 -.5 basis point
• 3-Month EUR/USD Cross-Currency Basis Swap -24.0 +1.5 basis points

Economic Gauges:

• 3-Month T-Bill Yield .11% +1 basis point
• Yield Curve 149.0 +3 basis points
• China Import Iron Ore Spot $118.70/Metric Tonne+1.02%
• Citi US Economic Surprise Index 48.20 -.8 point
• 10-Year TIPS Spread 2.48 -1 basis point

Overseas Futures:

• Nikkei Futures: Indicating +7 open in Japan
• DAX Futures: Indicating -20 open in Germany

Portfolio:

• Slightly Higher: On gains in my Biotech/Medical sector longs, index hedges and emerging markets shorts
• Disclosed Trades: None
• Market Exposure: 25% Net Long