Stocks Rising into Final Hour on Diminished Fed Taper Worries, Lower Long-Term Rates, Sector Rotation, Tech/Medical Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 16.1 -1.8%
• Bloomberg Global Risk On/Risk Off Index 2,868.0 +49.0 points

• Euro/Yen Carry Return Index 133.81 +.08%

• Emerging Markets Currency Volatility(VXY) 8.6 -.93%

• S&P 500 Implied Correlation 49.3 +.94%

• ISE Sentiment Index 124.0  -15.0 points
  

• Total Put/Call .75 -12.8%

• NYSE Arms 1.3 +63.2%

Credit Investor Angst:

• North American Investment Grade CDS Index 46.12 -1.5%
  

• US Energy High-Yield OAS 417.90 -.6%

• European Financial Sector CDS Index 52.32 +.01%

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

• Asia Ex-Japan Investment Grade CDS Index 67.75 -4.3%
  

• Emerging Market CDS Index 151.81 -1.1%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 38.49 unch.

• 2-Year Swap Spread 9.25 +.25 basis point

• TED Spread 7.5 -.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -3.0 -.25 basis point
  
• MBS  5/10 Treasury Spread  73.75 +1.75 basis points
  
• IHS Markit CMBX BBB- 6 72.5 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 60.14 +.16%
• 3-Month T-Bill Yield .04% -1.0 basis point
  

• Yield Curve 108.0 -1.0 basis point
  

• China Iron Ore Spot 156.90 USD/Metric Tonne -2.1%

• Citi US Economic Surprise Index -50.7 -1.2 points

• Citi Eurozone Economic Surprise Index -16.9 -2.2 points
  

• Citi Emerging Markets Economic Surprise Index 23.6 -4.9 points

• 10-Year TIPS Spread 2.37 -1.0 basis point
• 100.0% chance of no change at Nov. 3rd meeting, 98.2% chance of no change at Dec. 15th meeting

US Covid-19:

• 333 new infections/100K people(last 7 days total) +3/100K people
• 62% of Jan. 7th, 2021 peak(highest daily avg. new infections) unch.
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -79 open in Japan 
• China A50 Futures: Indicating -74 open in China

• DAX Futures: Indicating -4 open in Germany

Portfolio:

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

• Disclosed Trades: None
  

• Market Exposure: 100% Net Long