Stocks Lower into Final Hour on Less Fiscal Cliff Optimism, Profit-Taking, More Shorting, Healthcare/Telecom Sector Weakness

Today's Market Take:

Broad Market Tone:

• Advance/Decline Line: About Even
  

• Sector Performance: Most Sectors Declining
  

• Volume: Slightly Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• VIX 17.10 +9.83%

• ISE Sentiment Index 95.0 -17.4%

• Total Put/Call .94 +10.59%

• NYSE Arms 136.0 +182.19%

Credit Investor Angst:

• North American Investment Grade CDS Index 89.19 +.14%

• European Financial Sector CDS Index 138.37 -.57%

• Western Europe Sovereign Debt CDS Index 109.34 -.52%

• Emerging Market CDS Index 208.05 +1.23%

• 2-Year Swap Spread 12.25 +.75 bp

• TED Spread 26.5 -.25 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -24.75 -2.0 bps

Economic Gauges:

• 3-Month T-Bill Yield .05% +1 bp

• Yield Curve 153.0 -1 bp

• China Import Iron Ore Spot $135.50/Metric Tonne+2.5%

• Citi US Economic Surprise Index 46.20 -.8 point

• 10-Year TIPS Spread 2.49 -1 bp

Overseas Futures:

• Nikkei Futures: Indicating +26 open in Japan

• DAX Futures: Indicating -5 open in Germany

Portfolio:

• Slightly Higher: On gains in my tech sector longs and index hedges

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 25% Net Long