Stocks Falling Substantially into Afternoon on Diminished Stimulus Hopes, Rising Virus Lockdown Worries, Biden Presidency/Tax Hike Fears, Transport/Energy Sector Weakness

 Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Every Sector Declining
  

• Volume: Around Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 33.0 +19.6%
• Bloomberg Global Risk On/Risk Off Index -113.0 -431.0 points

• Euro/Yen Carry Return Index 128.32 -.32%

• Emerging Markets Currency Volatility(VXY) 11.07 +1.5%

• S&P 500 Implied Correlation 61.05 +21.6%

• ISE Sentiment Index 134.0 +35.0 points
  

• Total Put/Call .81 +2.53%

• NYSE Arms 1.44 +30.9%

Credit Investor Angst:

• North American Investment Grade CDS Index 58.76 +3.58%
  

• US Energy High-Yield OAS 804.38 +.43%

• European Financial Sector CDS Index 75.86 +4.6%

• Italian/German 10Y Yld Spread 132.0 -1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 65.69 +.22%
  

• Emerging Market CDS Index 208.93 +2.72%
  

• iBoxx Offshore RMB China Corporate High Yield Index 179.66 +.06%

• 2-Year Swap Spread 8.5 +.25 basis point

• TED Spread 13.0 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -14.5 -1.0 basis point
  
• MBS  5/10 Treasury Spread  81.50 +1.5 basis points
  
• IHS Markit CMBX BBB- 6 68.25 unch.

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.51 -.38%
• 3-Month T-Bill Yield .09% unch.

• Yield Curve 66.5 -3.5 basis points
  

• China Iron Ore Spot 112.40 USD/Metric Tonne -1.1%

• Citi US Economic Surprise Index 113.2 -14.7 points

• Citi Eurozone Economic Surprise Index 9.90 -5.8 points
  

• Citi Emerging Markets Economic Surprise Index 39.20 -1.3 points

• 10-Year TIPS Spread 1.72 -1.0 basis point
• 100.0% chance of no change at Dec. 16th meeting, 100.0% chance of no change at Jan. 27th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -84 open in Japan 
• China A50 Futures: Indicating -26 open in China

• DAX Futures: Indicating -35 open in Germany

Portfolio:

• Slightly Lower: On losses in my biotech/industrial/consumer staple/tech/medical sector longs
  

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my emerging market shorts
  

• Market Exposure: Moved to 25% Net Long