Stocks Surging into Final Hour on Fiscal Cliff Optimism, Short-Covering, Technical Buying, Tech/Financial Sector Strength

Broad Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Slightly Below Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• VIX 15.70 -3.92%

• ISE Sentiment Index 115.0 -30.3%

• Total Put/Call .84 +.20%

• NYSE Arms .51 +7.48%

Credit Investor Angst:

• North American Investment Grade CDS Index 89.20 -2.90%

• European Financial Sector CDS Index 139.15 -5.45%

• Western Europe Sovereign Debt CDS Index 109.91 -.45%

• Emerging Market CDS Index 206.55 -1.72%

• 2-Year Swap Spread 11.5 -1.0 bp

• TED Spread 26.75 -2 bps

• 3-Month EUR/USD Cross-Currency Basis Swap -22.75 +.25 bp

Economic Gauges:

• 3-Month T-Bill Yield .04% +2 bps

• Yield Curve 154.0 +2 bps

• China Import Iron Ore Spot $132.20/Metric Tonne unch.

• Citi US Economic Surprise Index 47.0 -.4 point

• 10-Year TIPS Spread 2.50 +2 bps

Overseas Futures:

• Nikkei Futures: Indicating +132 open in Japan

• DAX Futures: Indicating +6 open in Germany

Portfolio:

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added them back

• Market Exposure: 50% Net Long