Stocks Falling into Afternoon on Tax Hike Fears, China Debt Bubble Bursting Worries, Labor/Product Shortage Concerns, Tech/Commodity Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 20.6 +10.4%
• Bloomberg Global Risk On/Risk Off Index 2,976.0 -37.0 points

• Euro/Yen Carry Return Index 133.14 -.13%

• Emerging Markets Currency Volatility(VXY) 8.7 +1.6%.

• S&P 500 Implied Correlation 55.3 +1.2%

• ISE Sentiment Index 92.0  -23.0 points
  

• Total Put/Call .95 +14.5%

• NYSE Arms 1.19 -11.9%

Credit Investor Angst:

• North American Investment Grade CDS Index 46.70 +1.2%
  

• US Energy High-Yield OAS 376.38 -.76%

• European Financial Sector CDS Index 50.96 +.8%

• Italian/German 10Y Yld Spread 100.0 +.5 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 71.52 +6.5%
  

• Emerging Market CDS Index 155.06 +.78%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 37.59 -.58%

• 2-Year Swap Spread 11.0 +.25 basis point
  

• TED Spread 9.0 +.75 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -3.75 +.75 basis point
  
• MBS  5/10 Treasury Spread  73.75 -.5 basis point
  
• IHS Markit CMBX BBB- 6 71.75 -.5 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.61 -.55%
• 3-Month T-Bill Yield .03% unch.
  

• Yield Curve 112.0 +3.0 basis points
  

• China Iron Ore Spot 99.60 USD/Metric Tonne -1.7%

• Citi US Economic Surprise Index -45.3 -.7 point

• Citi Eurozone Economic Surprise Index -19.2 -.7 point
  

• Citi Emerging Markets Economic Surprise Index 5.1 -1.2 points

• 10-Year TIPS Spread 2.35 -1.0 basis point
• 100.0% chance of no change at Nov. 3rd meeting, 100.0% chance of no change at Dec. 15th meeting

US Covid-19:

• 327 new infections/100K people(last 7 days total) -1/100K people
• 61% of Jan. 7th, 2021 peak(highest daily avg. new infections) -1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -375 open in Japan 
• China A50 Futures: Indicating -59 open in China

• DAX Futures: Indicating -15 open in Germany

Portfolio:

• Slightly Lower: On losses in my biotech/industrial/tech sector longs,
  

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  

• Market Exposure: Moved to 50% Net Long