Stocks Rising into Final Hour on Fiscal Cliff Optimism, Window-Dressing, Short-Covering, Consumer Discretionary/Tech Sector Strength

Broad Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Every Sector Rising
  

• Volume: Light

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• VIX 18.45 -18.79%

• ISE Sentiment Index 123.0 -2.4%

• Total Put/Call 1.05 -.94%

• NYSE Arms .33 -84.77%

Credit Investor Angst:

• North American Investment Grade CDS Index 94.36 -5.1%

• European Financial Sector CDS Index 141.32 +.26%

• Western Europe Sovereign Debt CDS Index 111.37 +.85%

• Emerging Market CDS Index 207.91 -1.23%

• 2-Year Swap Spread 13.75 -.5 bp

• TED Spread 26.5 -3.75 bps

• 3-Month EUR/USD Cross-Currency Basis Swap -20.75 +.5 bp

Economic Gauges:

• 3-Month T-Bill Yield .04% -1 bp

• Yield Curve 151.0 +6 bps

• China Import Iron Ore Spot $144.90/Metric Tonne +3.95%

• Citi US Economic Surprise Index 39.9 -7.8 points

• 10-Year TIPS Spread 2.45 +1 bp

Overseas Futures:

• Nikkei Futures: Indicating +119 open in Japan

• DAX Futures: Indicating +6 open in Germany

Portfolio:

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 50% Net Long