Stocks Slightly Lower into Final Hour on Labor/Product Shortage Fears, Higher Long-Term Rates, Tax Hike Worries, Tech/Medical Equipment Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 18.3 +2.8%
• Bloomberg Global Risk On/Risk Off Index 3,228.0 +1.0 point

• Euro/Yen Carry Return Index 134.03 +.09%

• Emerging Markets Currency Volatility(VXY) 8.7 -.9%.

• S&P 500 Implied Correlation 55.5 +2.9%

• ISE Sentiment Index 108.0  +28.0 points
  

• Total Put/Call .80 -18.4%

• NYSE Arms .43 -48.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 50.93 -.12%
  

• US Energy High-Yield OAS 373.64 -1.6%

• European Financial Sector CDS Index 55.26 -.23%

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

• Asia Ex-Japan Investment Grade CDS Index 87.0 +1.68%
  

• Emerging Market CDS Index 176.74 +1.2%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 37.19 +.03%

• 2-Year Swap Spread 11.25 -.5 basis point
  

• TED Spread 10.75 +.75 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -2.5 -.25 basis point
  
• MBS  5/10 Treasury Spread  72.75 -1.5 basis points
  
• IHS Markit CMBX BBB- 6 71.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.12 -.07%
• 3-Month T-Bill Yield .03% unch.
  

• Yield Curve 118.0 -1.0 basis point
  

• China Iron Ore Spot 117.55 USD/Metric Tonne unch.

• Citi US Economic Surprise Index -28.8 +2.0 points

• Citi Eurozone Economic Surprise Index -63.8 -.3 point
  

• Citi Emerging Markets Economic Surprise Index -.8 -1.4 points

• 10-Year TIPS Spread 2.36 +2.0 basis points
• 98.5% chance of no change at Dec. 15th meeting, 98.5% chance of no change at Jan. 26th meeting

US Covid-19:

• 257 new infections/100K people(last 7 days total) -16/100K people
• 48% of Jan. 7th, 2021 peak(highest daily avg. new infections) -3.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -135 open in Japan 
• China A50 Futures: Indicating +38 open in China

• DAX Futures: Indicating +15 open in Germany

Portfolio:

• Slightly Higher: On gains in my industrial/consumer discretionary sector longs,
  

• Disclosed Trades: None
  

• Market Exposure: 100% Net Long