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

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Around Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 18.7 -10.6%
• Bloomberg Global Risk On/Risk Off Index 3,094.0 +360.0 points

• Euro/Yen Carry Return Index 133.53 +.87%

• Emerging Markets Currency Volatility(VXY) 8.8 -1.2%.

• S&P 500 Implied Correlation 54.7 -2.6%

• ISE Sentiment Index 92.0  -30.0 points
  

• Total Put/Call .83 -14.4%

• NYSE Arms .48 -30.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 50.62 -1.7%
  

• US Energy High-Yield OAS 376.91 -1.67%

• European Financial Sector CDS Index 55.08 -2.1%

• Italian/German 10Y Yld Spread 98.0 -1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 83.0 -3.6%
  

• Emerging Market CDS Index 168.30 +.17%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 37.34 +.04%

• 2-Year Swap Spread 12.0 +1.0 basis point
  

• TED Spread 10.5 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -3.0 -.25 basis point
  
• MBS  5/10 Treasury Spread  74.85 -.25 basis point
  
• IHS Markit CMBX BBB- 6 71.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.44 +.01%
• 3-Month T-Bill Yield .03% +1.0 basis piont
  

• Yield Curve 111.0 unch.
  

• China Iron Ore Spot 110.35 USD/Metric Tonne +.3%

• Citi US Economic Surprise Index -32.4 -3.2 points

• Citi Eurozone Economic Surprise Index -66.5 -41.0 points
  

• Citi Emerging Markets Economic Surprise Index 2.9 -.7 point

• 10-Year TIPS Spread 2.34 +4.0 basis points
• 100.0% chance of no change at Dec. 15th meeting, 100.0% chance of no change at Jan. 26th meeting

US Covid-19:

• 282 new infections/100K people(last 7 days total) -8/100K people
• 53% of Jan. 7th, 2021 peak(highest daily avg. new infections) -1.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +501 open in Japan 
• China A50 Futures: Indicating -76 open in China

• DAX Futures: Indicating -1 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
  

• Market Exposure: Moved to 100% Net Long