Stocks Reversing Lower into Afternoon on Tax Hike Fears, Labor/Product Shortage Worries, Fed Taper Concerns, Biotech/Road & Rail Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Slightly Higher
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 20.7 -1.3%
• Bloomberg Global Risk On/Risk Off Index 2,012.0 -1.0 point

• Euro/Yen Carry Return Index 134.05 -.03%

• Emerging Markets Currency Volatility(VXY) 8.6 -.12%.

• S&P 500 Implied Correlation 56.0 -.3%

• ISE Sentiment Index 96.0  -3.0 points
  

• Total Put/Call .82 -15.5%

• NYSE Arms .63 -58.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 47.07 -.5%
  

• US Energy High-Yield OAS 392.61 -.38%

• European Financial Sector CDS Index 51.48 +.35%

• Italian/German 10Y Yld Spread 102.0 -1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 65.85 +.4%
  

• Emerging Market CDS Index 153.34 +1.11%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 38.4 -.05%

• 2-Year Swap Spread 10.25 +.25 basis point

• TED Spread 7.75 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -3.75 -.25 basis point
  
• MBS  5/10 Treasury Spread  73.5 +1.5 basis points
  
• IHS Markit CMBX BBB- 6 72.25 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 60.18 +.04%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 112.0 +3.0 basis points
  

• China Iron Ore Spot 123.15 USD/Metric Tonne -4.7%

• Citi US Economic Surprise Index -54.9 +5.6 points

• Citi Eurozone Economic Surprise Index -19.7 -1.9 points
  

• Citi Emerging Markets Economic Surprise Index 12.1 +2.0 points

• 10-Year TIPS Spread 2.37 -4.0 basis points
• 98.3% chance of no change at Nov. 3rd meeting, 98.3% chance of no change at Dec. 15th meeting

US Covid-19:

• 313 new infections/100K people(last 7 days total) -9/100K people
• 59% of Jan. 7th, 2021 peak(highest daily avg. new infections) -2.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -47 open in Japan 
• China A50 Futures: Indicating -6 open in China

• DAX Futures: Indicating -6 open in Germany

Portfolio:

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

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

• Market Exposure: Moved to 50% Net Long