Stocks Falling into Afternoon on Rising Fiscal Cliff Fears, Global Growth Worries, Eurozone Debt Angst, Homebuilding/Tech/Commodity Sector Weakness

Today's Market Take:

Broad Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Above Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• VIX 18.45 +4.41%

• ISE Sentiment Index 95.0 -25.2%

• Total Put/Call 1.03 +19.77%

• NYSE Arms 2.91 +339.91%

Credit Investor Angst:

• North American Investment Grade CDS Index 92.92 +4.8%

• European Financial Sector CDS Index 138.83 +3.1%

• Western Europe Sovereign Debt CDS Index 110.14 +1.1%

• Emerging Market CDS Index 211.27 +1.3%

• 2-Year Swap Spread 13.25 +.5 bp

• TED Spread 26.0 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -25.5 unch.

Economic Gauges:

• 3-Month T-Bill Yield .05% unch.

• Yield Curve 148.0 -4 bps

• China Import Iron Ore Spot $135.40/Metric Tonne -.07%

• Citi US Economic Surprise Index 54.80 -1.2 points

• 10-Year TIPS Spread 2.48 -1 bp

Overseas Futures:

• Nikkei Futures: Indicating +111 open in Japan

• DAX Futures: Indicating +11 open in Germany

Portfolio:

• Slightly Higher: On gains in my index hedges and emerging markets shorts

• Disclosed Trades: None

• Market Exposure: 25% Net Long