Stocks Reversing Higher into Final Hour on Fiscal Cliff Optimism, Short-Covering, Bargain-Hunting, Consumer Discretionary Strength

Today's Market Take:
 
Broad Market Tone:

• Advance/Decline Line: Modestly Higher
  
• Sector Performance: Most Sectors Rising
• Volume: Below Average
• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• VIX 15.80 -.75%
• ISE Sentiment Index 133.0 +41.5%
• Total Put/Call .84 unch.
• NYSE Arms .60 -.67%

Credit Investor Angst:

• North American Investment Grade CDS Index 101.42 -.72%
• European Financial Sector CDS Index 164.20 +1.03%
• Western Europe Sovereign Debt CDS Index 109.98 bps +.90%
• Emerging Market CDS Index 252.95 bps -1.04%
• 2-Year Swap Spread 12.0 -.5 basis point
• TED Spread 22.0 -1.0 basis point
• 3-Month EUR/USD Cross-Currency Basis Swap -27.75 +.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .09% +1 basis point
• Yield Curve 136.0 -2 basis points
• China Import Iron Ore Spot $117.90/Metric Tonne unch.
• Citi US Economic Surprise Index 47.0 -2.0 points
• 10-Year TIPS Spread 2.39 unch.
  

Overseas Futures:

• Nikkei Futures: Indicating +52 open in Japan
• DAX Futures: Indicating +37 open in Germany

Portfolio:

• Higher: On gains in my Tech/Medical/Retail/Biotech sector longs and emerging markets shorts
• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
• Market Exposure: Moved to 50% Net Long