Stocks Surging into Afternoon on Diminishing Fed Taper Fears, Lower Long-Term Rates, Oil Gain, Commodity/Consumer Discretionary Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Below Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 16.3 -13.4%
• Bloomberg Global Risk On/Risk Off Index 2,844.0 +178.0 points

• Euro/Yen Carry Return Index 133.68 +.14%

• Emerging Markets Currency Volatility(VXY) 8.7 unch.

• S&P 500 Implied Correlation 49.0 -3.4%

• ISE Sentiment Index 146.0  +47.0 points
  

• Total Put/Call .82 -3.5%

• NYSE Arms .77 -48.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 46.58 -3.7%
  

• US Energy High-Yield OAS 422.54 -1.8%

• European Financial Sector CDS Index 52.3 -1.4%

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

• Asia Ex-Japan Investment Grade CDS Index 70.91 -.83%
  

• Emerging Market CDS Index 153.4 -3.88%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 38.49 +.09%

• 2-Year Swap Spread 8.75 unch.

• TED Spread 7.75 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -2.75 -.25 basis point
  
• MBS  5/10 Treasury Spread  72.0 -2.0 basis points
  
• IHS Markit CMBX BBB- 6 72.5 -.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 60.04 +.56%
• 3-Month T-Bill Yield .05% unch.
  

• Yield Curve 101.0 +1.0 basis point
  

• China Iron Ore Spot 163.85 USD/Metric Tonne +6.1%

• Citi US Economic Surprise Index -49.5 -.1 point

• Citi Eurozone Economic Surprise Index -14.7 -1.5 points
  

• Citi Emerging Markets Economic Surprise Index 28.5 -1.5 points

• 10-Year TIPS Spread 2.38 +3.0 basis points
• 100.0% chance of no change at Nov. 3rd meeting, 98.2% chance of no change at Dec. 15th meeting

US Covid-19:

• 330 new infections/100K people(last 7 days total) +5/100K people
• 62% of Jan. 7th, 2021 peak(highest daily avg. new infections) +1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +200 open in Japan 
• China A50 Futures: Indicating +48 open in China

• DAX Futures: Indicating -5 open in Germany

Portfolio:

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

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

• Market Exposure: Moved to 100% Net Long