Stocks Down Slightly into Final Hour on More Hawkish Fed Commentary, Fiscal Cliff Worries, Profit-Taking, Tech/Heathcare/Mining Sector Weakness

Broad Market Tone:

• Advance/Decline Line: Slightly Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• VIX 14.72 +.27%

• ISE Sentiment Index 139.0 +7.75%

• Total Put/Call .78 -18.75%

• NYSE Arms 1.08 +23.3%

Credit Investor Angst:

• North American Investment Grade CDS Index 85.20 +.12%

• European Financial Sector CDS Index 123.66 -2.35%

• Western Europe Sovereign Debt CDS Index 101.61 -3.23%

• Emerging Market CDS Index 191.92 -1.57%

• 2-Year Swap Spread 12.75 -.25 bp

• TED Spread 24.0 -1.0 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -19.5 unch.

Economic Gauges:

• 3-Month T-Bill Yield .07% +1 bp

• Yield Curve 163.0 +5 bps

• China Import Iron Ore Spot $149.80/Metric Tonne +3.38%

• Citi US Economic Surprise Index 34.70 +1.6 points

• 10-Year TIPS Spread 2.47 -1 bp

Overseas Futures:

• Nikkei Futures: Indicating +390 open in Japan

• DAX Futures: Indicating +1 open in Germany

Portfolio:

• Higher: On gains in my retail/medical sector longs and index hedges

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges, then covered some of them

• Market Exposure: 50% Net Long