Stocks Slightly Lower into Final Hour on Rising Fiscal Cliff Worries, More Shorting, Profit-Taking, Commodity/Road & Rail Sector Weakness

Today's Market Take:

Broad Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• VIX 13.99 +1.16%

• ISE Sentiment Index 124.0 +10.7%

• Total Put/Call .88 +4.76%

• NYSE Arms 1.25 +51.94%

Credit Investor Angst:

• North American Investment Grade CDS Index 85.06 -.58%

• European Financial Sector CDS Index 122.61 -2.46%

• Western Europe Sovereign Debt CDS Index 99.97 -1.52%

• Emerging Market CDS Index 195.97 +1.16%

• 2-Year Swap Spread 13.0 -.5 bp

• TED Spread 25.0 +1 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -19.75 -.75 bp

Economic Gauges:

• 3-Month T-Bill Yield .06% -1 bp

• Yield Curve 163.0 -1 bp

• China Import Iron Ore Spot $153.90/Metric Tonne +.39%

• Citi US Economic Surprise Index 31.90 -2.2 points

• 10-Year TIPS Spread 2.52 +4 bps

Overseas Futures:

• Nikkei Futures: Indicating +46 open in Japan

• DAX Futures: Indicating +3 open in Germany

Portfolio:

• Slightly Higher: On gains in my medical/biotech sector longs and index hedges

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 50% Net Long