Stocks Surging into Final Hour on Fiscal Cliff Optimism, Less Eurozone Debt Angst, Short-Covering, Tech/Financial Sector Strength

Broad Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: About Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• VIX 15.20 -15.65%

• ISE Sentiment Index 129.0 +4.9%

• Total Put/Call .95 -6.86%

• NYSE Arms 1.15 +428.90%

Credit Investor Angst:

• North American Investment Grade CDS Index 85.79 -9.22%

• European Financial Sector CDS Index 126.67 -10.9%

• Western Europe Sovereign Debt CDS Index 104.99 -5.7%

• Emerging Market CDS Index 195.12 -6.11%

• 2-Year Swap Spread 13.0 -.75 bp

• TED Spread 25.0 -1.5 bp

• 3-Month EUR/USD Cross-Currency Basis Swap -19.5 +1.25 bps

Economic Gauges:

• 3-Month T-Bill Yield .06% +2 bps

• Yield Curve 158.0 +7 bps

• China Import Iron Ore Spot $144.90/Metric Tonne unch.

• Citi US Economic Surprise Index 33.1 -6.8 points

• 10-Year TIPS Spread 2.48 +3 bps

Overseas Futures:

• Nikkei Futures: Indicating +430 open in Japan

• DAX Futures: Indicating -1 open in Germany

Portfolio:

• Higher: On gains in my tech, biotech and medical sector longs

• Disclosed Trades: None

• Market Exposure: 50% Net Long