Stocks Reversing Slightly Higher into Afternoon on Stable Long-Term Rates, Sector Rotation, Technical Buying, Tech/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 15.6 -2.7%
• Bloomberg Global Risk On/Risk Off Index 2,965.0 +3.0 points

• Euro/Yen Carry Return Index 133.93 -.01%

• Emerging Markets Currency Volatility(VXY) 8.93 unch.

• S&P 500 Implied Correlation 48.5 -3.2%

• ISE Sentiment Index 78.0  -34.0 points
  

• Total Put/Call .90 -9.1%

• NYSE Arms 1.2 +38.4%

Credit Investor Angst:

• North American Investment Grade CDS Index 49.12 -1.7%
  

• US Energy High-Yield OAS 440.0 -.68%

• European Financial Sector CDS Index 53.1 -1.5%

• Italian/German 10Y Yld Spread 100.0 -3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 86.82 -1.32%
  

• Emerging Market CDS Index 161.69 -2.2%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 38.23 unch.

• 2-Year Swap Spread 9.25 unch.

• TED Spread 7.75 -.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -2.5 +.5 basis point
  
• MBS  5/10 Treasury Spread  71.75 -1.5 basis points
  
• IHS Markit CMBX BBB- 6 73.5 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.69 +.23%
• 3-Month T-Bill Yield .05% unch.
  

• Yield Curve 113.0 +1.75 basis points
  

• China Iron Ore Spot 157.45 USD/Metric Tonne -1.12%

• Citi US Economic Surprise Index -11.6 -1.1 points

• Citi Eurozone Economic Surprise Index 12.8 -1.7 points
  

• Citi Emerging Markets Economic Surprise Index 40.7 +3.2 points

• 10-Year TIPS Spread 2.43 +3.0 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:

• 258 new infections/100K people(last 7 days total) n/a
• 48% of Jan. 7th, 2021 peak(highest daily avg. new infections) n/a
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +65 open in Japan 
• China A50 Futures: Indicating -152 open in China

• DAX Futures: Indicating +8 open in Germany

Portfolio:

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

• Disclosed Trades: None
  

• Market Exposure: 100% Net Long