Stocks Rising into Final Hour on Fiscal Cliff Optimism, Short-Covering, US Economic Data, Financial Sector Strength

Broad Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• VIX 17.66 +1.73%

• ISE Sentiment Index 127.0 +33.7%

• Total Put/Call .84 -11.58%

• NYSE Arms .79 -55.16%

Credit Investor Angst:

• North American Investment Grade CDS Index 89.41 -.55%

• European Financial Sector CDS Index 134.59 -2.74%

• Western Europe Sovereign Debt CDS Index 108.99 -.31%

• Emerging Market CDS Index 208.85 +1.49%

• 2-Year Swap Spread 12.75 +.5 bp

• TED Spread 26.0 -.5 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -25.5 -.75 bp

Economic Gauges:

• 3-Month T-Bill Yield .05% unch.

• Yield Curve 152.0 -1 bp

• China Import Iron Ore Spot $135.50/Metric Tonne unch.

• Citi US Economic Surprise Index 56.0 +9.8 points

• 10-Year TIPS Spread 2.49 unch.

Overseas Futures:

• Nikkei Futures: Indicating +109 open in Japan

• DAX Futures: Indicating +13 open in Germany

Portfolio:

• Slightly Higher: On gains in my tech, medical and biotech sector longs

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 50% Net Long