Stocks Reversing Lower into Final Hour on Rising Global Growth Fears, Fiscal Cliff Worries, Technical Selling, Cyclical Stock Weakness

Today's Market Take:

Broad Market Tone:

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

Equity Investor Angst:

• VIX 16.69 +5.17%
• ISE Sentiment Index 95.0 +9.2%
• Total Put/Call .78 -33.33%
• NYSE Arms 1.12 +26.92%

Credit Investor Angst:

• North American Investment Grade CDS Index 99.50 +.89%
• European Financial Sector CDS Index 160.19 -3.36%
• Western Europe Sovereign Debt CDS Index 106.38 bps -1.85%
• Emerging Market CDS Index 233.0 bps -1.87%
• 2-Year Swap Spread 12.0 -.75 basis point
• TED Spread 23.0 -.5 basis point
• 3-Month EUR/USD Cross-Currency Basis Swap -23.75 +1 bp

Economic Gauges:

• 3-Month T-Bill Yield .08% unch.
• Yield Curve 137.0 unch.
• China Import Iron Ore Spot $115.30/Metric Tonne -.26%
• Citi US Economic Surprise Index 35.10 -8.0 points
• 10-Year TIPS Spread 2.44 +2 basis points
  

Overseas Futures:

• Nikkei Futures: Indicating -13 open in Japan
• DAX Futures: Indicating -9 open in Germany

Portfolio:

• Slightly Higher: On gains in my index hedges and emerging markets shorts
• Disclosed Trades: None
• Market Exposure: 25% Net Long