Stocks Reversing Higher into Final Hour on Diminished Global Virus Shutdown Fears, Earnings Optimism, Short-Covering, Commodity/Airlines Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 18.1 +5.2%
• Bloomberg Global Risk On/Risk Off Index 2,749.0 -137.0 points

• Euro/Yen Carry Return Index 134.50 +.08%

• Emerging Markets Currency Volatility(VXY) 8.7 +1.1%

• S&P 500 Implied Correlation 50.9 +.9%

• ISE Sentiment Index 99.0  -25.0 points
  

• Total Put/Call .87 unch.

• NYSE Arms 1.13 -36.9%

Credit Investor Angst:

• North American Investment Grade CDS Index 48.81 +.58%
  

• US Energy High-Yield OAS 419.17 -.08%

• European Financial Sector CDS Index 53.87 +.33%

• Italian/German 10Y Yld Spread 105.0 -3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 85.59 +1.8%
  

• Emerging Market CDS Index 162.80 +1.2%
  

• China Corp. High-Yield Bond USD ETF(KCCB) 38.64 -.34%

• 2-Year Swap Spread 8.75 +.5 basis point

• TED Spread 8.5 -1.0 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -5.0 unch.
  
• MBS  5/10 Treasury Spread  72.5 -.75 basis point
  
• IHS Markit CMBX BBB- 6 73.75 +.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.77 +.04%
• 3-Month T-Bill Yield .04% -1.0 basis point
  

• Yield Curve 106.0 +5.0 basis points
  

• China Iron Ore Spot 200.20 USD/Metric Tonne +.4%

• Citi US Economic Surprise Index -1.9 -13.5 points

• Citi Eurozone Economic Surprise Index 48.1 -11.5 points
  

• Citi Emerging Markets Economic Surprise Index 52.9 -1.6 points

• 10-Year TIPS Spread 2.40 +9.0 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:

• 111 infections/100K people(last 7 days) +26/100K people
• 21% of Jan. 7th, 2021 peak(highest daily avg. new infections) +5.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +127 open in Japan 
• China A50 Futures: Indicating -108 open in China

• DAX Futures: Indicating -11 open in Germany

Portfolio:

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

• Disclosed Trades: None
  

• Market Exposure: 75% Net Long