Stocks Slightly Lower into Final Hour on Sequester Worries, Profit-Taking, Technical Selling, Consumer Discretionary/Financial Sector Weakness

Broad Market Tone:

• Advance/Decline Line: Slightly Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• VIX 13.19 +4.35%
  

• ISE Sentiment Index 128.0 +37.63%

• Total Put/Call .89 -1.11%

• NYSE Arms 1.32 +44.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 87.30 -1.08%

• European Financial Sector CDS Index 140.77 -5.7%

• Western Europe Sovereign Debt CDS Index 99.71 -3.28%

• Emerging Market CDS Index 232.95 -.21%

• 2-Year Swap Spread 15.25 -.5 bp

• TED Spread 20.0 -1.0 bps

• 3-Month EUR/USD Cross-Currency Basis Swap -16.75 +.25 bp

Economic Gauges:

• 3-Month T-Bill Yield .09% +1 bp

• Yield Curve 174.0 +2 bps

• China Import Iron Ore Spot $155.10/Metric Tonne n/a

• Citi US Economic Surprise Index -7.0 +2.0 points

• 10-Year TIPS Spread 2.57 +1 bp

Overseas Futures:

• Nikkei Futures: Indicating +75 open in Japan

• DAX Futures: Indicating -5 open in Germany

Portfolio:

• Slightly Higher: On gains in my biotech/tech sector longs
• Disclosed Trades: None
• Market Exposure: 50% Net Long