Stocks Slightly Lower into Afternoon on Labor/Product Shortage Concerns, Higher Long-Term Rates, US Dollar Strength, Biotech/Alt Energy Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 17.9 -3.7%
• Bloomberg Global Risk On/Risk Off Index 3,199.0 +124.0 points

• Euro/Yen Carry Return Index 133.91 +.21%

• Emerging Markets Currency Volatility(VXY) 8.8 +1.14%.

• S&P 500 Implied Correlation 55.5 +3.2%

• ISE Sentiment Index 77.0  -20.0 points
  

• Total Put/Call .94 -20.5%

• NYSE Arms .84 +75.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.11 +.36%
  

• US Energy High-Yield OAS 379.09 +.64%

• European Financial Sector CDS Index 55.39 +.56%

• Italian/German 10Y Yld Spread 101.0 +3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 85.46 +2.9%
  

• Emerging Market CDS Index 174.50 +3.55%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 37.19 -.33%

• 2-Year Swap Spread 11.75 -.25 basis point
  

• TED Spread 10.0 -.5 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -2.75 +.25 basis point
  
• MBS  5/10 Treasury Spread  74.25 -.5 basis point
  
• IHS Markit CMBX BBB- 6 71.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.16 -.46%
• 3-Month T-Bill Yield .03% unch.
  

• Yield Curve 119.0 +8.0 basis points
  

• China Iron Ore Spot 117.5 USD/Metric Tonne +5.8%

• Citi US Economic Surprise Index -30.8 +1.6 points

• Citi Eurozone Economic Surprise Index -63.5 +3.0 points
  

• Citi Emerging Markets Economic Surprise Index .6 -2.3 points

• 10-Year TIPS Spread 2.34 unch.
• 97.9% chance of no change at Dec. 15th meeting, 95.4% chance of no change at Jan. 26th meeting

US Covid-19:

• 273 new infections/100K people(last 7 days total) -9/100K people
• 51% of Jan. 7th, 2021 peak(highest daily avg. new infections) -2.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -188 open in Japan 
• China A50 Futures: Indicating -72 open in China

• DAX Futures: Indicating -9 open in Germany

Portfolio:

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

• Disclosed Trades: None
  

• Market Exposure: 100% Net Long