Stocks Surging into Final Hour on Fiscal Cliff Hopes, Less Eurozone Debt Angst, Short-Covering, Bargain-Hunting

Today's Market Take:

Broad Market Tone:

• Advance/Decline Line: Substantially Higher
  
• Sector Performance: Almost Every Sector Rising
• Volume: Below Average
• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• VIX 15.39 -6.22%
• ISE Sentiment Index 130.0 +31.31%
• Total Put/Call .71 -30.39%
• NYSE Arms .68 -47.56%

Credit Investor Angst:

• North American Investment Grade CDS Index 104.19 bps -4.61%
• European Financial Sector CDS Index 176.52 bps -5.57%
• Western Europe Sovereign Debt CDS Index 121.53 bps -2.8%
• Emerging Market CDS Index 244.50 bps -3.14%
• 2-Year Swap Spread 143.0 -1.25 basis points
• TED Spread 23.5 unch.
• 3-Month EUR/USD Cross-Currency Basis Swap -28.75 +1.5 basis points

Economic Gauges:

• 3-Month T-Bill Yield .08% unch.
• Yield Curve 136.0 +2 basis points
• China Import Iron Ore Spot $122.80/Metric Tonne unch.
• Citi US Economic Surprise Index 46.80 -.7 point
• 10-Year TIPS Spread 2.39 +1 basis point
  

Overseas Futures:

• Nikkei Futures: Indicating +62 open in Japan
• DAX Futures: Indicating -5 open in Germany

Portfolio:

• Higher: On gains in my Tech/Medical/Biotech and Retail sector longs
• Disclosed Trades: Covered some of my (IWM), (QQQ) hedges and some of my (EEM) short
• Market Exposure: Moved to 75% Net Long