Stocks Slightly Higher into Final Hour on Fiscal Cliff Optimism, Seasonal Strength, Short-Covering, Consumer Discretionary/Tech Sector Strength

Broad Market Tone:

• Advance/Decline Line: Modestly Lower
  
• Sector Performance: Mixed
  
• Volume: Below Average
• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• VIX 16.59 +.79%
• ISE Sentiment Index 145.0 -2.0%
• Total Put/Call .93 +6.90%
• NYSE Arms .88 +67.40%

Credit Investor Angst:

• North American Investment Grade CDS Index 97.69 -.04%
• European Financial Sector CDS Index 150.39 -.97%
• Western Europe Sovereign Debt CDS Index 105.54 bps +.85%
• Emerging Market CDS Index 217.18 bps -2.0%
• 2-Year Swap Spread 11.5 -.25 bp
• TED Spread 22.0 unch.
• 3-Month EUR/USD Cross-Currency Basis Swap -24.25 unch.

Economic Gauges:

• 3-Month T-Bill Yield .09% unch.
• Yield Curve 134.0 -1 bp
• China Import Iron Ore Spot $118.40/Metric Tonne +.42%
• Citi US Economic Surprise Index 35.50 +.8 point
• 10-Year TIPS Spread 2.46 +1 bp
  

Overseas Futures:

• Nikkei Futures: Indicating -15 open in Japan
• DAX Futures: Indicating +9 open in Germany

Portfolio:

• Slightly Higher: On gains in my tech and medical sector longs
• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
• Market Exposure: Moved to 50% Net Long