Stocks Surging into Afternoon on Earnings Optimism, Stable Long-Term Rates, Oil Gain, Financial/Consumer Discretionary Sector Strength

 

 Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Every Sector Rising
  

• Volume: Around Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 20.4 -9.3%
• Bloomberg Global Risk On/Risk Off Index 2,533.0 +182.0 points

• Euro/Yen Carry Return Index 133.62 +.18%

• Emerging Markets Currency Volatility(VXY) 8.8 +.8%

• S&P 500 Implied Correlation 41.1 -7.9%

• ISE Sentiment Index 105.0  +19.0 points
  

• Total Put/Call .72 -28.7%

• NYSE Arms .60 -63.4%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.15 -.65%
  

• US Energy High-Yield OAS 445.15 +1.2%

• European Financial Sector CDS Index 56.99 +1.0%

• Italian/German 10Y Yld Spread 110.0 unch.
  

• Asia Ex-Japan Investment Grade CDS Index 86.62 +1.56%
  

• Emerging Market CDS Index 163.24 -2.27%
  

• China Corp. High-Yield Bond USD ETF(KCCB) 38.81 -.31%

• 2-Year Swap Spread 8.0 +1.25 basis points

• TED Spread 9.25 +.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -4.5 unch.
  
• MBS  5/10 Treasury Spread  74.0 +1.0 basis point
  
• IHS Markit CMBX BBB- 6 73.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.71 +.11%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 98.0 -8.0 basis points
  

• China Iron Ore Spot 213.0 USD/Metric Tonne +1.1%

• Citi US Economic Surprise Index 14.4 -3.2 points

• Citi Eurozone Economic Surprise Index 64.2 -3.2 points
  

• Citi Emerging Markets Economic Surprise Index 60.3 +1.1 points

• 10-Year TIPS Spread 2.26 -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:

• 75 infections/100K people(last 7 days) +7/100K people
• 14% of Jan. 7th, 2021 peak(highest daily avg. new infections) +1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +352 open in Japan 
• China A50 Futures: Indicating +9 open in China

• DAX Futures: Indicating +35 open in Germany

Portfolio:

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and added consumer discretionary longs
  

• Market Exposure: Moved to 100% Net Long