Stocks Lower into Final Hour on Rising Fiscal Cliff Fears, Earnings Jitters, Profit-Taking, Tech/Heathcare Sector Weakness

Broad Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• VIX 13.78 -.07%

• ISE Sentiment Index 98.0 +15.29%

• Total Put/Call .93 +4.49%

• NYSE Arms 1.57 +30.40%

Credit Investor Angst:

• North American Investment Grade CDS Index 85.57 +.75%

• European Financial Sector CDS Index 122.90 +.22%

• Western Europe Sovereign Debt CDS Index 101.35 +1.38%

• Emerging Market CDS Index 202.99 +3.66%

• 2-Year Swap Spread 13.50 +.5 bp

• TED Spread 24.50 -.5 bp

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

Economic Gauges:

• 3-Month T-Bill Yield .06% unch.

• Yield Curve 161.0 -2 bps

• China Import Iron Ore Spot $158.50/Metric Tonne +2.99%

• Citi US Economic Surprise Index 31.10 -.8 point

• 10-Year TIPS Spread 2.50 -2 bps

Overseas Futures:

• Nikkei Futures: Indicating -68 open in Japan

• DAX Futures: Indicating +18 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, then covered some of them

• Market Exposure: 50% Net Long