Stocks Rising into Final Hour on Stable Long-Term Rates, Short-Covering, Technical Buying, Consumer Discretionary/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 18.8 -13.3%
• Bloomberg Global Risk On/Risk Off Index 2,389.0 +96.0 points

• Euro/Yen Carry Return Index 132.71 +.23%

• Emerging Markets Currency Volatility(VXY) 9.1 +1.5%

• S&P 500 Implied Correlation 52.5 +1.5%

• ISE Sentiment Index 154.0  +55.0 points
  

• Total Put/Call .87 -15.5%

• NYSE Arms .94 -35.4%

Credit Investor Angst:

• North American Investment Grade CDS Index 49.76 +1.3%
  

• US Energy High-Yield OAS 461.57 +.12%

• European Financial Sector CDS Index 54.19 +.06%

• Italian/German 10Y Yld Spread 104.0 -1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 73.39 -2.6%
  

• Emerging Market CDS Index 166.39 -.11%
  

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

• 2-Year Swap Spread 9.5 unch.

• TED Spread 8.25 -.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -2.5 -.25 basis point
  
• MBS  5/10 Treasury Spread  76.75 +1.25 basis points
  
• IHS Markit CMBX BBB- 6 71.5 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.16 -.02%
• 3-Month T-Bill Yield .05% unch.
  

• Yield Curve 102.0 -3.0 basis points
  

• China Iron Ore Spot 140.80 USD/Metric Tonne +3.2%

• Citi US Economic Surprise Index -36.8 +.3 point

• Citi Eurozone Economic Surprise Index 5.3 -.9 point
  

• Citi Emerging Markets Economic Surprise Index 36.6 -.3 point

• 10-Year TIPS Spread 2.28 -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:

• 304 new infections/100K people(last 7 days total) +8/100K people
• 57% of Jan. 7th, 2021 peak(highest daily avg. new infections) +1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +207 open in Japan 
• China A50 Futures: Indicating +26 open in China

• DAX Futures: Indicating +5 open in Germany

Portfolio:

• Higher: On gains in my tech/medical/biotech/industrial/consumer discretionary sector longs and emerging market shorts
  

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

• Market Exposure: Moved to 100% Net Long