Stocks Lower into Final Hour on US Mask Mandate Concerns, China Economic Crackdown Fears, Earnings Jitters, Transport/Alt Energy Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Around Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 19.7 +12.2%
• Bloomberg Global Risk On/Risk Off Index 2,500.0 -300.0 points

• Euro/Yen Carry Return Index 133.98 -.4%

• Emerging Markets Currency Volatility(VXY) 8.7 +.8%

• S&P 500 Implied Correlation 52.1 +4.5%

• ISE Sentiment Index 100.0  -4.0 points
  

• Total Put/Call 1.07 +25.9%

• NYSE Arms .78 -16.1%

Credit Investor Angst:

• North American Investment Grade CDS Index 49.62 +2.1%
  

• US Energy High-Yield OAS 425.88 +1.7%

• European Financial Sector CDS Index 54.89 +1.9%

• Italian/German 10Y Yld Spread 106.0 +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 92.08 +4.9%
  

• Emerging Market CDS Index 167.02 +2.6%
  

• China Corp. High-Yield Bond USD ETF(KCCB) 38.36 -.67%

• 2-Year Swap Spread 7.25 -1.5 basis points

• TED Spread 8.75 +.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -5.25 -.25 basis point
  
• MBS  5/10 Treasury Spread  74.5 +2.0 basis points
  
• IHS Markit CMBX BBB- 6 73.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.74 -.05%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 107.0 +1.0 basis point
  

• China Iron Ore Spot 198.60 USD/Metric Tonne -1.2%

• Citi US Economic Surprise Index 3.1 +5.0 points

• Citi Eurozone Economic Surprise Index 40.9 -7.2 points
  

• Citi Emerging Markets Economic Surprise Index 50.5 -2.4 points

• 10-Year TIPS Spread 2.37 -3.0 basis points
• 100.0% chance of no change at Nov. 3rd meeting, 100.0% chance of no change at Dec. 15th meeting

US Covid-19:

• 121 infections/100K people(last 7 days) +10/100K people
• 23% of Jan. 7th, 2021 peak(highest daily avg. new infections) +2.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -425 open in Japan 
• China A50 Futures: Indicating -254 open in China

• DAX Futures: Indicating -9 open in Germany

Portfolio:

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

• Disclosed Trades: None
  

• Market Exposure: 75% Net Long