Stocks Reversing Higher into Final Hour on More Dovish Fed Commentary, Earnings Optimism, Oil Gain, Tech/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Around Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 18.1 -6.8%
• Bloomberg Global Risk On/Risk Off Index 2,667.0 +125.0 points

• Euro/Yen Carry Return Index 134.42 +.4%

• Emerging Markets Currency Volatility(VXY) 8.7 +.4%

• S&P 500 Implied Correlation 50.1 -2.3%

• ISE Sentiment Index 146.0  +36.0 points
  

• Total Put/Call .76 -25.5%

• NYSE Arms .43 -50.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 49.02 -.92%
  

• US Energy High-Yield OAS 424.0 -.52%

• European Financial Sector CDS Index 54.21 -1.3%

• Italian/German 10Y Yld Spread 107.0 +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 92.34 +.47%
  

• Emerging Market CDS Index 165.93 -.65%
  

• China Corp. High-Yield Bond USD ETF(KCCB) 38.09 -.20%

• 2-Year Swap Spread 7.75 +.5 basis point

• TED Spread 8.75 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -5.0 +.25 basis point
  
• MBS  5/10 Treasury Spread  72.0 -2.5 basis points
  
• IHS Markit CMBX BBB- 6 73.5 -.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.89 +.26%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 104.0 -3.0 basis points
  

• China Iron Ore Spot 198.50 USD/Metric Tonne -.35%

• Citi US Economic Surprise Index 3.2 +.1 point

• Citi Eurozone Economic Surprise Index 39.7 -1.2 points
  

• Citi Emerging Markets Economic Surprise Index 50.8 +.3 point

• 10-Year TIPS Spread 2.38 +1.0 basis point
• 100.0% chance of no change at Nov. 3rd meeting, 100.0% chance of no change at Dec. 15th meeting

US Covid-19:

• 130 infections/100K people(last 7 days) +9/100K people
• 25% of Jan. 7th, 2021 peak(highest daily avg. new infections) +2.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +319 open in Japan 
• China A50 Futures: Indicating +394 open in China

• DAX Futures: Indicating -5 open in Germany

Portfolio:

• Slightly Lower: On gains in my industrial/biotech/tech/consumer discretionary/mecdical sector longs
  

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  

• Market Exposure: Moved to 100% Net Long