Stocks Sharply Lower into Final Hour on Fiscal Cliff Worries, Mideast Unraveling, Global Growth Fears, Eurozone Debt Angst

Today's Market Take:

Broad Market Tone:

• Advance/Decline Line: Substantially Lower
  
• Sector Performance: Almost Every Sector Declining.
• Volume: Around Average
• Market Leading Stocks: Underperforming

Equity Investor Angst:

• VIX 17.77 +6.73%
• ISE Sentiment Index 97.0 +.1%
• Total Put/Call 1.06 +27.71%
• NYSE Arms 1.16 +11.92%

Credit Investor Angst:

• North American Investment Grade CDS Index 108.55 bps +1.65%
• European Financial Sector CDS Index 181.30 bps +.79%
• Western Europe Sovereign Debt CDS Index 119.87 bps +2.54%
• Emerging Market CDS Index 242.80 bps +1.82%
• 2-Year Swap Spread 11.5 -.5 basis point
• TED Spread 21.5 -.75 basis point
• 3-Month EUR/USD Cross-Currency Basis Swap -27.5 +.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .10% +1 basis point
• Yield Curve 133.0 -1 basis point
• China Import Iron Ore Spot $122.40/Metric Tonne +.08%
• Citi US Economic Surprise Index 57.0 -3.7 points
• 10-Year TIPS Spread 2.39 -3 basis points
  

Overseas Futures:

• Nikkei Futures: Indicating +19 open in Japan
• DAX Futures: Indicating -45 open in Germany

Portfolio:

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