Stocks Surging into Afternoon on Diminished China Debt Bubble Bursting Fears, Declining US Covid Cases, Dovish FOMC Commentary, Commodity/Consumer Discretionary Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 21.7 -10.9%
• Bloomberg Global Risk On/Risk Off Index 2,701.0 +188.0 points

• Euro/Yen Carry Return Index 132.59 +.37%

• Emerging Markets Currency Volatility(VXY) 8.9 -.33%.

• S&P 500 Implied Correlation 56.5 -2.4%

• ISE Sentiment Index 143.0  +18.0 points
  

• Total Put/Call .89 unch.

• NYSE Arms .47 -64.4%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.75 -2.5%
  

• US Energy High-Yield OAS 384.71 -1.22%

• European Financial Sector CDS Index 56.29 -3.4%

• Italian/German 10Y Yld Spread 199.0 -2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 85.75 -2.4%
  

• Emerging Market CDS Index 166.77 -.84%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 37.33 +.54%

• 2-Year Swap Spread 11.0 -.5 basis point
  

• TED Spread 10.5 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -2.75 +.25 basis point
  
• MBS  5/10 Treasury Spread  75.0 -.5 basis point
  
• IHS Markit CMBX BBB- 6 71.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.60 +.13%
• 3-Month T-Bill Yield .02% unch.
  

• Yield Curve 111.0 unch.
  

• China Iron Ore Spot 109.80 USD/Metric Tonne +11.5%

• Citi US Economic Surprise Index -29.2 +.3 point

• Citi Eurozone Economic Surprise Index -25.5 -1.0 points
  

• Citi Emerging Markets Economic Surprise Index 3.6 +.2 point

• 10-Year TIPS Spread 2.30 -1.0 basis point
• 100.0% chance of no change at Dec. 15th meeting, 100.0% chance of no change at Jan. 26th meeting

US Covid-19:

• 290 new infections/100K people(last 7 days total) -4/100K people
• 54% of Jan. 7th, 2021 peak(highest daily avg. new infections) -1.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +281 open in Japan 
• China A50 Futures: Indicating +70 open in China

• DAX Futures: Indicating +11 open in Germany

Portfolio:

• Higher: On gains in my biotech/tech/medical/industrial/consumer discretionary sector longs,
  

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my emerging market shorts
  

• Market Exposure: Moved to 75% Net Long