Stocks Reversing Slightly Higher into Afternoon on Diminishing Fed Taper Fears, Lower Long-Term Rates, US Dollar Weakness, Tech/Pharma Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 15.3 -1.8%
• Bloomberg Global Risk On/Risk Off Index 2,911.0 -26.0 points

• Euro/Yen Carry Return Index 133.70 -.14%

• Emerging Markets Currency Volatility(VXY) 8.7 -.91%

• S&P 500 Implied Correlation 49.0 +2.1%

• ISE Sentiment Index 114.0  +27.0 points
  

• Total Put/Call .84 -4.6%

• NYSE Arms 1.2 -6.3%

Credit Investor Angst:

• North American Investment Grade CDS Index 48.47 -1.4%
  

• US Energy High-Yield OAS 443.0 +.50%

• European Financial Sector CDS Index 52.93 -.31%

• Italian/German 10Y Yld Spread 101.0 +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 85.0 -2.3%
  

• Emerging Market CDS Index 159.31 -1.5%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 38.46 +.57%

• 2-Year Swap Spread 9.0 -.25 basis point

• TED Spread 7.75 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -2.5 +.5 basis point
  
• MBS  5/10 Treasury Spread  74.0 +2.25 basis points
  
• IHS Markit CMBX BBB- 6 73.5 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.80 +.27%
• 3-Month T-Bill Yield .05% unch.
  

• Yield Curve 113.0 +1.75 unch.
  

• China Iron Ore Spot 162.05 USD/Metric Tonne +2.3%

• Citi US Economic Surprise Index -29.1 -17.5 points

• Citi Eurozone Economic Surprise Index 12.3 -.5 point
  

• Citi Emerging Markets Economic Surprise Index 44.4 +3.7 points

• 10-Year TIPS Spread 2.39 -4.0 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:

• 263 new infections/100K people(last 7 days total) +5/100K people
• 49% of Jan. 7th, 2021 peak(highest daily avg. new infections) +1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -62 open in Japan 
• China A50 Futures: Indicating -49 open in China

• DAX Futures: Indicating -3 open in Germany

Portfolio:

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

• Disclosed Trades: None
  

• Market Exposure: 100% Net Long