Stocks Slightly Lower into Afternoon on Labor/Product Shortage Concerns, Mandate/Lockdown Fears, Higher Long-Term Rates, Airline/Healthcare Provider Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: About Even
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 18.4 -2.3%
• Bloomberg Global Risk On/Risk Off Index 3,084.0 +177.0 points

• Euro/Yen Carry Return Index 134.16 +.13%

• Emerging Markets Currency Volatility(VXY) 8.6 -.4%.

• S&P 500 Implied Correlation 53.8 -.07%

• ISE Sentiment Index 99.0  -2.9 points
  

• Total Put/Call .87 +7.4%

• NYSE Arms 1.13 +27.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 46.94 -.02%
  

• US Energy High-Yield OAS 393.06 -1.4%

• European Financial Sector CDS Index 51.3 -.16%

• Italian/German 10Y Yld Spread 103.0 unch.
  

• Asia Ex-Japan Investment Grade CDS Index 65.61 -.62%
  

• Emerging Market CDS Index 151.21 -1.16%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 38.44 +.18%

• 2-Year Swap Spread 10.0 +.5 basis point

• TED Spread 7.75 -.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -3.5 +.75 basis point
  
• MBS  5/10 Treasury Spread  72.0 -2.5 basis points
  
• IHS Markit CMBX BBB- 6 72.25 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 60.16 -.06%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 109.0 -3.0 basis points
  

• China Iron Ore Spot 131.0 USD/Metric Tonne -.3%

• Citi US Economic Surprise Index -60.5 +1.1 points

• Citi Eurozone Economic Surprise Index -17.8 -7.1 points
  

• Citi Emerging Markets Economic Surprise Index 10.1 -.8 point

• 10-Year TIPS Spread 2.41 +3.0 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:

• 324 new infections/100K people(last 7 days total) -3/100K people
• 61% of Jan. 7th, 2021 peak(highest daily avg. new infections) unch.
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -131 open in Japan 
• China A50 Futures: Indicating unch. open in China

• DAX Futures: Indicating +3 open in Germany

Portfolio:

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

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

• Market Exposure: Moved to 75% Net Long