Stocks Reversing Lower into Final Hour on Rising Global Growth Fears, US "Fiscal Cliff" Worries, Rising Food/Energy Prices, Homebuilding/Tech Sector Weakness

Broad Market Tone:

• Advance/Decline Line: Higher
• Sector Performance: Most Sectors Rising
• Volume: Below Average
• Market Leading Stocks: Underperforming

Equity Investor Angst:

• VIX 15.58 -4.36%
• ISE Sentiment Index 122.0 -2.40%
• Total Put/Call .86 -14.0%
• NYSE Arms .83 -43.19%

Credit Investor Angst:

• North American Investment Grade CDS Index 97.30 bps -1.72%
• European Financial Sector CDS Index 180.57 bps -2.87%
• Western Europe Sovereign Debt CDS Index 141.18 bps -.20%
• Emerging Market CDS Index 222.87 bps -2.24%
• 2-Year Swap Spread 11.75 -.25 basis point
• TED Spread 24.5-1.0 basis point
• 3-Month EUR/USD Cross-Currency Basis Swap -25.5 -1.5 basis points

Economic Gauges:

• 3-Month T-Bill Yield .10% unch.
• Yield Curve 140.0 -5 basis points
• China Import Iron Ore Spot $115.80/Metric Tonne -1.61%
• Citi US Economic Surprise Index 45.70 +3.1 points
• 10-Year TIPS Spread 2.47 -8 basis points

Overseas Futures:

• Nikkei Futures: Indicating +49 open in Japan
• DAX Futures: Indicating -17 open in Germany

Portfolio:

• Slightly Lower: On losses in my tech sector longs and index hedges
• Disclosed Trades: None
• Market Exposure: 25% Net Long