Stocks Lower into Final Hour on Labor/Product Shortage Fears, Less Dovish Fed Commentary, Higher Long-Term Rates, Tech/Biotech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 23.2 +23.7%
• Bloomberg Global Risk On/Risk Off Index 2,842.0 -319.0 points

• Euro/Yen Carry Return Index 134.42 +.35%

• Emerging Markets Currency Volatility(VXY) 8.8 +1.2%.

• S&P 500 Implied Correlation 57.7 +4.1%

• ISE Sentiment Index 87.0  -19.0 points
  

• Total Put/Call 1.11 +38.8%

• NYSE Arms .68 +23.6%

Credit Investor Angst:

• North American Investment Grade CDS Index 52.0 +2.1%
  

• US Energy High-Yield OAS 374.77 +.52%

• European Financial Sector CDS Index 56.71 +2.6%

• Italian/German 10Y Yld Spread 105.0 unch.
  

• Asia Ex-Japan Investment Grade CDS Index 87.30 +.63%
  

• Emerging Market CDS Index 182.53 +3.0%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 36.95 -.23%

• 2-Year Swap Spread 8.75 -2.5 basis points
  

• TED Spread 10.25 -.5 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -3.0 -.5 basis point
  
• MBS  5/10 Treasury Spread  72.5 -.25 basis point
  
• IHS Markit CMBX BBB- 6 71.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 58.79 -.50%
• 3-Month T-Bill Yield .03% unch.
  

• Yield Curve 122.0 +4.0 basis points
  

• China Iron Ore Spot 112.10 USD/Metric Tonne -1.2%

• Citi US Economic Surprise Index -34.7 -5.9 points

• Citi Eurozone Economic Surprise Index -62.9 +.9 point
  

• Citi Emerging Markets Economic Surprise Index -1.1 -.3 point

• 10-Year TIPS Spread 2.39 +3.0 basis points
• 99.5% chance of no change at Dec. 15th meeting, 99.5% chance of no change at Jan. 26th meeting

US Covid-19:

• 250 new infections/100K people(last 7 days total) -7/100K people
• 47% of Jan. 7th, 2021 peak(highest daily avg. new infections) -1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -490 open in Japan 
• China A50 Futures: Indicating -81 open in China

• DAX Futures: Indicating +19 open in Germany

Portfolio:

• Lower: On losses in my tech/biotech/medical/consumer discretionary sector longs,
  

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my emerging market shorts
  

• Market Exposure: Moved to 50% Net Long