Stocks Rising into Final Hour on Earnings Optimism, Lower Long-Term Rates, Oil Gain, Restaurant/Road & Rail Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Performing In line
  

Equity Investor Angst:

• Volatility(VIX) 17.6 -1.7%
• Bloomberg Global Risk On/Risk Off Index 2,832.0 +2.0 points

• Euro/Yen Carry Return Index 133.94 -.31%

• Emerging Markets Currency Volatility(VXY) 8.8 -.11%

• S&P 500 Implied Correlation 51.4 -1.3%

• ISE Sentiment Index 112.0  +2.0 point
  

• Total Put/Call .81 -4.7%

• NYSE Arms 1.33 +155.7%

Credit Investor Angst:

• North American Investment Grade CDS Index 48.98 -.43%
  

• US Energy High-Yield OAS 421.73 -.4%

• European Financial Sector CDS Index 54.33 -2.1%

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

• Asia Ex-Japan Investment Grade CDS Index 85.87 -.65%
  

• Emerging Market CDS Index 162.47 +.46%
  

• China Corp. High-Yield Bond USD ETF(KCCB) 38.80 -.13%

• 2-Year Swap Spread 8.25 -.25 basis point

• TED Spread 9.5 +.5 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -5.0 -1.0 basis point
  
• MBS  5/10 Treasury Spread  73.25 unch.
  
• IHS Markit CMBX BBB- 6 73.5 -.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.82 +.03%
• 3-Month T-Bill Yield .04% -1.0 basis point
  

• Yield Curve 101.0 unch.
  

• China Iron Ore Spot 198.0 USD/Metric Tonne -.7%

• Citi US Economic Surprise Index 11.6 -.5 point

• Citi Eurozone Economic Surprise Index 59.6 -.7 point
  

• Citi Emerging Markets Economic Surprise Index 54.5 -4.0 points

• 10-Year TIPS Spread 2.31 +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:

• 85 infections/100K people(last 7 days) +6/100K people
• 16% of Jan. 7th, 2021 peak(highest daily avg. new infections) +1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +492 open in Japan 
• China A50 Futures: Indicating -46 open in China

• DAX Futures: Indicating +21 open in Germany

Portfolio:

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

• Disclosed Trades: None
  

• Market Exposure: 100% Net Long