Stocks Modestly Higher into Final Hour on Diminishing Virus Lockdown Fears, Oil Gain, Short-Covering, Energy/Healthcare Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Around Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 16.7 +3.9%
• Bloomberg Global Risk On/Risk Off Index 2,955.0 -22.0 points

• Euro/Yen Carry Return Index 134.76 +.24%

• Emerging Markets Currency Volatility(VXY) 8.55 unch.

• S&P 500 Implied Correlation 50.51 +1.8%

• ISE Sentiment Index 99.0  -25.0 points
  

• Total Put/Call .64 -20.0%

• NYSE Arms .99 -27.2%

Credit Investor Angst:

• North American Investment Grade CDS Index 46.42 +.71%
  

• US Energy High-Yield OAS 401.51 -1.45%

• European Financial Sector CDS Index 51.67 +.3%

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

• Asia Ex-Japan Investment Grade CDS Index 64.61 -1.09%
  

• Emerging Market CDS Index 150.09 -.72%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 38.40 -.23%

• 2-Year Swap Spread 9.0 -.25 basis point

• TED Spread 8.25 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -3.0 -.75 basis point
  
• MBS  5/10 Treasury Spread  75.5 +.5 basis point
  
• IHS Markit CMBX BBB- 6 72.5 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 60.54 -.01%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 109.0 -2.0 basis points
  

• China Iron Ore Spot 143.0 USD/Metric Tonne -1.6%

• Citi US Economic Surprise Index -51.8 +.7 point

• Citi Eurozone Economic Surprise Index -10.9 -.1 point
  

• Citi Emerging Markets Economic Surprise Index 18.5 +.7 point

• 10-Year TIPS Spread 2.34 unch.
• 100.0% chance of no change at Nov. 3rd meeting, 98.2% chance of no change at Dec. 15th meeting

US Covid-19:

• 355 new infections/100K people(last 7 days total) +10/100K people
• 67% of Jan. 7th, 2021 peak(highest daily avg. new infections) +2.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +92 open in Japan 
• China A50 Futures: Indicating +2 open in China

• DAX Futures: Indicating -27 open in Germany

Portfolio:

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

• Disclosed Trades: None
  

• Market Exposure: 100% Net Long