Stocks Lower into Final Hour on Global Virus Shutdown/Mandate Worries, China Economic Crackdown Fears, Dollar Strength, Commodity/Airlines Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 18.0 +1.7%
• Bloomberg Global Risk On/Risk Off Index 2,647.0 -107.0 points

• Euro/Yen Carry Return Index 134.47 +.07%

• Emerging Markets Currency Volatility(VXY) 8.5 -.2%

• S&P 500 Implied Correlation 52.5 +4.4%

• ISE Sentiment Index 95.0  -20.0 points
  

• Total Put/Call .76 +!3.4%

• NYSE Arms 1.6 +68.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 49.24 +1.1%
  

• US Energy High-Yield OAS 424.38 +.8%

• European Financial Sector CDS Index 54.23 +.69%

• Italian/German 10Y Yld Spread 108.0 unch.
  

• Asia Ex-Japan Investment Grade CDS Index 91.1 +.5%
  

• Emerging Market CDS Index 163.83 +1.5%
  

• China Corp. High-Yield Bond USD ETF(KCCB) 37.8 -.45%

• 2-Year Swap Spread 7.75 unch.

• TED Spread 8.5 -.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -4.75 -.25 basis point
  
• MBS  5/10 Treasury Spread  72.5 +2.5 basis points
  
• IHS Markit CMBX BBB- 6 73.75 +.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 60.06 -.37%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 105.0 +1.0 basis point
  

• China Iron Ore Spot 176.80 USD/Metric Tonne -7.1%

• Citi US Economic Surprise Index -13.8 +5.2 points

• Citi Eurozone Economic Surprise Index 40.4 -5.0 points
  

• Citi Emerging Markets Economic Surprise Index 49.3 -.3 point

• 10-Year TIPS Spread 2.40 -2.0 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:

• 144 infections/100K people(last 7 days) +7/100K people
• 27% of Jan. 7th, 2021 peak(highest daily avg. new infections) +1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +230 open in Japan 
• China A50 Futures: Indicating -51 open in China

• DAX Futures: Indicating -7 open in Germany

Portfolio:

• Slightly Higher: On gains in my tech/medical sector longs, index hedges and emerging market shorts
  

• Disclosed Trades: None
  

• Market Exposure: 75% Net Long