Stocks Slightly Higher into Final Hour on Stable Long-Term Rates, Dollar Weakness, Short-Covering, Biotech/Homebuilding 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) 15.8 -4.3%
• Bloomberg Global Risk On/Risk Off Index 3,020.0 +87.0 points

• Euro/Yen Carry Return Index 134.42 +.27%

• Emerging Markets Currency Volatility(VXY) 8.53 -.12%

• S&P 500 Implied Correlation 49.6 unch.

• ISE Sentiment Index 138.0  +38.0 points
  

• Total Put/Call .76 -13.6%

• NYSE Arms 1.20 +46.3%

Credit Investor Angst:

• North American Investment Grade CDS Index 46.11 -.28%
  

• US Energy High-Yield OAS 408.08 -.95%

• European Financial Sector CDS Index 51.51 -.81%

• Italian/German 10Y Yld Spread 106.0 -3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 65.17 -2.2%
  

• Emerging Market CDS Index 150.73 -.86%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 38.48 -.18%

• 2-Year Swap Spread 9.25 unch.

• TED Spread 8.25 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -2.25 +.75 basis point
  
• MBS  5/10 Treasury Spread  75.0 +.5 basis point
  
• IHS Markit CMBX BBB- 6 72.5 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 60.58 +.19%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 111.0 +4.0 basis points
  

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

• Citi US Economic Surprise Index -52.5 +3.8 points

• Citi Eurozone Economic Surprise Index -10.8 unch.
  

• Citi Emerging Markets Economic Surprise Index 18.5 -1.6 points

• 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:

• 345 new infections/100K people(last 7 days total) +6/100K people
• 65% of Jan. 7th, 2021 peak(highest daily avg. new infections) +1.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +144 open in Japan 
• China A50 Futures: Indicating +46 open in China

• DAX Futures: Indicating -9 open in Germany

Portfolio:

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

• Disclosed Trades: None
  

• Market Exposure: 100% Net Long