Stocks Rising into Final Hour on Earnings Optimism, Oil Gain, Short-Covering, Commodity/Financial Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Below Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 18.2 -7.9%
• Bloomberg Global Risk On/Risk Off Index 2,815.0 +244.0 points

• Euro/Yen Carry Return Index 134.41 +.56%

• Emerging Markets Currency Volatility(VXY) 8.8 +.6%

• S&P 500 Implied Correlation 37.2 -5.9%

• ISE Sentiment Index 100.0  -1.0 point
  

• Total Put/Call .81 +5.2%

• NYSE Arms .45 -2.2%

Credit Investor Angst:

• North American Investment Grade CDS Index 49.5 -2.8%
  

• US Energy High-Yield OAS 426.88 -3.4%

• European Financial Sector CDS Index 55.51 -2.6%

• Italian/German 10Y Yld Spread 108.0 -2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 86.30 +.1%
  

• Emerging Market CDS Index 161.94 -.4%
  

• China Corp. High-Yield Bond USD ETF(KCCB) 38.85 -.01%

• 2-Year Swap Spread 8.5 +.5 basis point

• TED Spread 9.0 -.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -4.0 +.5 basis point
  
• MBS  5/10 Treasury Spread  73.25 -.75 basis point
  
• IHS Markit CMBX BBB- 6 73.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.78 +.16%
• 3-Month T-Bill Yield .05% +1.0 basis point
  

• Yield Curve 101.0 +3.0 basis points
  

• China Iron Ore Spot 202.90 USD/Metric Tonne -5.7%

• Citi US Economic Surprise Index 12.1 -2.3 points

• Citi Eurozone Economic Surprise Index 60.3 -3.9 points
  

• Citi Emerging Markets Economic Surprise Index 58.5 -1.8 points

• 10-Year TIPS Spread 2.30 +4.0 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:

• 79 infections/100K people(last 7 days) +4/100K people
• 15% of Jan. 7th, 2021 peak(highest daily avg. new infections) +1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +402 open in Japan 
• China A50 Futures: Indicating -2 open in China

• DAX Futures: Indicating +21 open in Germany

Portfolio:

• Higher: On gains in my tech/industrial/consumer discretionary/biotech sector longs
  

• Disclosed Trades: None
  

• Market Exposure: 100% Net Long