Stocks Reversing Higher into Afternoon on Earnings Optimism, Diminished Virus Shutdown Fears, Stable Long-Term Rates, Road & Rail/Energy Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 18.3 -6.1%
• Bloomberg Global Risk On/Risk Off Index 2,600.0 +53.0 points

• Euro/Yen Carry Return Index 133.66 -.28%

• Emerging Markets Currency Volatility(VXY) 8.64 +.6%

• S&P 500 Implied Correlation 51.3 -4.7%

• ISE Sentiment Index 119.0  +14.0 points
  

• Total Put/Call .76 -13.6%

• NYSE Arms .90 -31.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 50.0 +.18%
  

• US Energy High-Yield OAS 437.38 +1.4%

• European Financial Sector CDS Index 54.11 +.56%

• Italian/German 10Y Yld Spread 105.0 -1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 90.8 -.26%
  

• Emerging Market CDS Index 162.57 -.41%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 38.14 +.43%

• 2-Year Swap Spread 7.25 -.5 basis point

• TED Spread 7.75 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -3.75 +.25 basis point
  
• MBS  5/10 Treasury Spread  72.75 unch.
  
• IHS Markit CMBX BBB- 6 73.5 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 60.11 -.13%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 101.0 -3.0 basis points
  

• China Iron Ore Spot 175.90 USD/Metric Tonne -1.8%

• Citi US Economic Surprise Index -11.7 +2.7 points

• Citi Eurozone Economic Surprise Index 37.1 -1.4 points
  

• Citi Emerging Markets Economic Surprise Index 39.0 -2.5 points

• 10-Year TIPS Spread 2.35 -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:

• 182 new infections/100K people(last 7 days total) +12/100K people
• 34% of Jan. 7th, 2021 peak(highest daily avg. new infections) +2.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +30 open in Japan 
• China A50 Futures: Indicating -164 open in China

• DAX Futures: Indicating +21 open in Germany

Portfolio:

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

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

• Market Exposure: Moved to 100% Net Long