Stocks Slightly Higher into Final Hour on Fiscal Cliff Optimism, Short-Covering, Seasonal Strength, Metals/Mining/Biotech Sector Strength

Today's Market Take:

Broad Market Tone:

• Advance/Decline Line: Slightly Higher
  

• Sector Performance: Mixed
  

• Volume: Light

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• VIX 16.11 +1.32%

• ISE Sentiment Index 114.0 -21.9%

• Total Put/Call .90 +12.5%

• NYSE Arms .96 +89.47%

Credit Investor Angst:

• North American Investment Grade CDS Index 95.83 -2.38%

• European Financial Sector CDS Index 156.70 +2.25%

• Western Europe Sovereign Debt CDS Index 113.09 bps +2.93%

• Emerging Market CDS Index 217.10 bps -1.39%

• 2-Year Swap Spread 11.75 +.5 bp

• TED Spread 23.5 +.75 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -24.5 +1.25 bps

Economic Gauges:

• 3-Month T-Bill Yield .08% unch.

• Yield Curve 138.0 -1 bp

• China Import Iron Ore Spot $123.40/Metric Tonne +1.98%

• Citi US Economic Surprise Index 49.70 -1.1 points

• 10-Year TIPS Spread 2.49 unch.

Overseas Futures:

• Nikkei Futures: Indicating -15 open in Japan

• DAX Futures: Indicating +1 open in Germany

Portfolio:

• Slightly Lower: On losses in the index hedges and emerging markets shorts

• Disclosed Trades: None

• Market Exposure: 25% Net Long