Stocks Slightly Lower into Final Hour on Rising Global Growth Fears, US Fiscal Cliff Worries, Earnings Jitters, Restaurant/Retail 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 16.39 +.43%
• ISE Sentiment Index 154.0 +4.76%
• Total Put/Call .69 -20.69%
• NYSE Arms 1.31 +30.60%

Credit Investor Angst:

• North American Investment Grade CDS Index 98.18 -.21%
• European Financial Sector CDS Index 195.33 bps -2.73%
• Western Europe Sovereign Debt CDS Index 145.32 -.19%
• Emerging Market CDS Index 218.45 -.07%
• 2-Year Swap Spread 14.25 +1.0 basis point
• TED Spread 26.75 -.75 basis point
• 3-Month EUR/USD Cross-Currency Basis Swap -26.75 +.75 basis point

Economic Gauges:

• 3-Month T-Bill Yield .09% +1 basis point
• Yield Curve 138.0 unch.
• China Import Iron Ore Spot $104.20/Metric Tonne unch.
• Citi US Economic Surprise Index 10.90 -.1 point
• 10-Year TIPS Spread 2.48 +6 basis points

Overseas Futures:

• Nikkei Futures: Indicating -13 open in Japan
• DAX Futures: Indicating -3 open in Germany

Portfolio:

• Slightly Higher: On gains in my Biotech/Medical sector longs
• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and covered some of my (EEM) short
• Market Exposure: Moved to 50% Net Long