Stocks Slightly Higher into Final Hour on Fiscal Cliff Optimism, Seasonal Strength, Short-Covering, Financial Sector Strength

Today's Market Take:
 
Broad Market Tone:

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

Equity Investor Angst:

• VIX 16.59 +.79%
• ISE Sentiment Index 146.0 unch.
• Total Put/Call .81 -.10%
• NYSE Arms .52 -37.25%

Credit Investor Angst:

• North American Investment Grade CDS Index 97.14 -.39%
• European Financial Sector CDS Index 153.26 +1.89%
• Western Europe Sovereign Debt CDS Index 109.90 bps +4.14%
• Emerging Market CDS Index 219.94 bps +1.20%
• 2-Year Swap Spread 11.25 -.25 bp
• TED Spread 22.75 +.75 bp
• 3-Month EUR/USD Cross-Currency Basis Swap -25.75 -1.5 bps

Economic Gauges:

• 3-Month T-Bill Yield .08% -1 bp
• Yield Curve 139.0 +5 bps
• China Import Iron Ore Spot $121.0/Metric Tonne +2.20%
• Citi US Economic Surprise Index 50.80 +15.3 points
• 10-Year TIPS Spread 2.49 +3 bps

Overseas Futures:

• Nikkei Futures: Indicating +17 open in Japan
• DAX Futures: Indicating +2 open in Germany

Portfolio:

• Slightly Higher: On gains in medial/retail sector longs and index hedges
• Disclosed Trades: Added to my (IWM)/(QQQ) hedges
• Market Exposure: Moved to 25% Net Long