Stocks Slightly Higher into Final Hour on Diminished Virus Shutdown Fears, Lower Long-Term Rates, Earnings Optimism, Tech/Homebuilding Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 19.4 +6.4%
• Bloomberg Global Risk On/Risk Off Index 2,556.0 -61.0 points

• Euro/Yen Carry Return Index 133.96 -.37%

• Emerging Markets Currency Volatility(VXY) 8.59 -.46%

• S&P 500 Implied Correlation 54.3 +5.8%

• ISE Sentiment Index 105.0  +7.0 points
  

• Total Put/Call .82 unch.

• NYSE Arms 1.1 -42.1%

Credit Investor Angst:

• North American Investment Grade CDS Index 49.65 +.07%
  

• US Energy High-Yield OAS 430.32 +1.4%

• European Financial Sector CDS Index 53.81 -.77%

• Italian/German 10Y Yld Spread 106.0 -2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 91.0 +.1%
  

• Emerging Market CDS Index 163.02 -.89%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 37.8 unch.

• 2-Year Swap Spread 7.75 unch.

• TED Spread 7.75 -.75 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -4.0 +.75 basis point
  
• MBS  5/10 Treasury Spread  72.75 +.25 basis point
  
• IHS Markit CMBX BBB- 6 73.5 -.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 60.22 +.32%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 104.0 -1.0 basis point
  

• China Iron Ore Spot 177.70 USD/Metric Tonne -.2%

• Citi US Economic Surprise Index -15.4 -1.6 points

• Citi Eurozone Economic Surprise Index 38.5 -1.9 points
  

• Citi Emerging Markets Economic Surprise Index 41.5 -7.8 points

• 10-Year TIPS Spread 2.37 -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:

• 170 infections/100K people(last 7 days) +26/100K people
• 32% of Jan. 7th, 2021 peak(highest daily avg. new infections) +5.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -171 open in Japan 
• China A50 Futures: Indicating -166 open in China

• DAX Futures: Indicating -19 open in Germany

Portfolio:

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

• Disclosed Trades: None
  

• Market Exposure: 100% Net Long