Tuesday, December 18, 2012

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

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