Stocks Higher into Final Hour on Declining Fed Taper Worries, Diminished Virus Lockdown Fears, Oil Gain, Commodity/Gaming 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) 17.0 -8.6%
• Bloomberg Global Risk On/Risk Off Index 2,637.0 +242.0 points

• Euro/Yen Carry Return Index 132.99 +.2%

• Emerging Markets Currency Volatility(VXY) 9.1 -.11%

• S&P 500 Implied Correlation 49.8 -1.9%

• ISE Sentiment Index 111.0  -35.0 points
  

• Total Put/Call .79 -16.8%

• NYSE Arms .65 +1.6%

Credit Investor Angst:

• North American Investment Grade CDS Index 48.6 -2.3%
  

• US Energy High-Yield OAS 454.50 -1.5%

• European Financial Sector CDS Index 53.0 -2.2%

• Italian/German 10Y Yld Spread 106.0 +2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 73.06 -.47%
  

• Emerging Market CDS Index 163.38 -1.3%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 38.3 -.10%

• 2-Year Swap Spread 8.75 -.75 basis point

• TED Spread 8.5 +.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -2.25 +.25 basis point
  
• MBS  5/10 Treasury Spread  76.5 -.25 basis point
  
• IHS Markit CMBX BBB- 6 72.25 +.75 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.41 +.33%
• 3-Month T-Bill Yield .04% -1.0 basis point
  

• Yield Curve 104.0 +2.0 basis points
  

• China Iron Ore Spot 135.05 USD/Metric Tonne -2.1%

• Citi US Economic Surprise Index -36.8 -8.7 points

• Citi Eurozone Economic Surprise Index -7.6 -12.9 points
  

• Citi Emerging Markets Economic Surprise Index 34.9 -2.7 points

• 10-Year TIPS Spread 2.28 unch.
• 100.0% chance of no change at Nov. 3rd meeting, 100.0% chance of no change at Dec. 15th meeting

US Covid-19:

• 314 new infections/100K people(last 7 days total) +10/100K people
• 59% of Jan. 7th, 2021 peak(highest daily avg. new infections) +2.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +126 open in Japan 
• China A50 Futures: Indicating +26 open in China

• DAX Futures: Indicating +7 open in Germany

Portfolio:

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

• Disclosed Trades: None
  

• Market Exposure: 100% Net Long