Stocks Reversing Lower into Final Hour on Tax Hike Fears, Labor/Product Shortage Worries, Technical Selling, Gambling/Financial Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 19.6 +1.0%
• Bloomberg Global Risk On/Risk Off Index 2,895.0 -95.0 points

• Euro/Yen Carry Return Index 133.75 -.27%

• Emerging Markets Currency Volatility(VXY) 8.5 -.82%.

• S&P 500 Implied Correlation 56.4 +15.7%

• ISE Sentiment Index 112.0  +13.0 points
  

• Total Put/Call .95 +4.4%

• NYSE Arms 1.29 +95.5%

Credit Investor Angst:

• North American Investment Grade CDS Index 46.74 -.11%
  

• US Energy High-Yield OAS 387.30 -1.0%

• European Financial Sector CDS Index 50.88 -1.17%

• Italian/German 10Y Yld Spread 98.75 -3.25 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 65.56 -.46%
  

• Emerging Market CDS Index 154.26 +1.0%
  

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

• 2-Year Swap Spread 10.25 unch.
  

• TED Spread 8.25 +.5 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -3.5 +.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 60.11 -.19%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 112.0 unch.
  

• China Iron Ore Spot 118.90 USD/Metric Tonne -2.1%

• Citi US Economic Surprise Index -61.7 -5.8 points

• Citi Eurozone Economic Surprise Index -20.8 -1.1 points
  

• Citi Emerging Markets Economic Surprise Index 11.7 -.4 point

• 10-Year TIPS Spread 2.34 -3.0 basis points
• 100.0% chance of no change at Nov. 3rd meeting, 100.0% chance of no change at Dec. 15th meeting

US Covid-19:

• 378 new infections/100K people(last 7 days total) +65/100K people
• 71% of Jan. 7th, 2021 peak(highest daily avg. new infections) +12.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -460 open in Japan 
• China A50 Futures: Indicating -86 open in China

• DAX Futures: Indicating -30 open in Germany

Portfolio:

• Slightly Higher: On gains in my medical sector longs, index hedges and emerging market shorts
  

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

• Market Exposure: Moved to 25% Net Long