Stocks Modestly Higher into Final Hour on Lower Long-Term Rates, Earnings Optimism, Technical Buying, Tech/Restaurant Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 15.9 +5.3%
• Bloomberg Global Risk On/Risk Off Index 3,277.0 -171.0 points

• Euro/Yen Carry Return Index 135.47 -.75%

• Emerging Markets Currency Volatility(VXY) 9.04 -.55%

• S&P 500 Implied Correlation 49.3 -2.1%

• ISE Sentiment Index 130.0  +6.6 points
  

• Total Put/Call .68 unch.

• NYSE Arms 1.64 +80.2%

Credit Investor Angst:

• North American Investment Grade CDS Index 50.24 -1.6%
  

• US Energy High-Yield OAS 352.36 -2.5%

• European Financial Sector CDS Index 55.71 -3.1%

• Italian/German 10Y Yld Spread 116.0 -6.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 81.32 -.74%
  

• Emerging Market CDS Index 179.30 -1.3%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 33.1 -.42%

• 2-Year Swap Spread 20.75 unch.
  

• TED Spread 10.0 +.5 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -19.25 -.5 basis point
  
• MBS  5/10 Treasury Spread  65.75 +3.75 basis points
  
• IHS Markit CMBX BBB- 6 72.25 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 57.87 -.32%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 113.0 +7.0 basis points
  

• China Iron Ore Spot 91.35 USD/Metric Tonne -3.3%

• Citi US Economic Surprise Index -3.4 +1.1 points

• Citi Eurozone Economic Surprise Index -50.6 -1.0 point
  

• Citi Emerging Markets Economic Surprise Index -22.7 -.5 point

• 10-Year TIPS Spread 2.57 +2.0 basis points
• 97.6% chance of no change at Jan. 26th meeting, 86.8% chance of no change at March 16th meeting

US Covid-19:

• 152 new infections/100K people(last 7 days total) -3/100K people
• 29% of Jan. 7th, 2021 peak(highest daily avg. new infections) unch.
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -89 open in Japan 
• China A50 Futures: Indicating -111 open in China

• DAX Futures: Indicating -8 open in Germany

Portfolio:

• Higher: On gains in my tech/industrial/consumer discretionary sector longs and emerging market shorts
  

• Disclosed Trades:  None
  

• Market Exposure:  100% Net Long