Stocks Slightly Higher into Afternoon on Lower Long-Term Rates, Sector Rotation, Technical Buying, Tech/Alt Energy Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 17.9 +2.0%
• Bloomberg Global Risk On/Risk Off Index 2,959.0 -147.0 points

• Euro/Yen Carry Return Index 132.72 -1.0%

• Emerging Markets Currency Volatility(VXY) 9.9 +2.4%

• S&P 500 Implied Correlation 48.5 +.6%

• ISE Sentiment Index 127.0  -17.0 points
  

• Total Put/Call .77 +14.9%

• NYSE Arms 1.3 -.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.43 +.60%
  

• US Energy High-Yield OAS 397.90 +3.2%

• European Financial Sector CDS Index 58.21 +1.9%

• Italian/German 10Y Yld Spread 121.0 +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 85.03 -2.4%
  

• Emerging Market CDS Index 187.49 +1.1%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 33.4 +.54%

• 2-Year Swap Spread 26.25 +2.0 basis points
  

• TED Spread 11.75 +.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -25.75 -1.75 basis points
  
• MBS  5/10 Treasury Spread  63.75 -.75 basis point
  
• IHS Markit CMBX BBB- 6 72.75 -.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 55.86 -.59%
• 3-Month T-Bill Yield .05% +1.0 basis point
  

• Yield Curve 109.0 +1.0 basis point
  

• China Iron Ore Spot 91.90 USD/Metric Tonne +4.1%

• Citi US Economic Surprise Index 32.0 +.1 point

• Citi Eurozone Economic Surprise Index -46.8 -1.2 points
  

• Citi Emerging Markets Economic Surprise Index -19.1 +.4 point

• 10-Year TIPS Spread 2.68 -4.0 basis points
• 95.0% chance of no change at Jan. 26th meeting, 80.3% chance of no change at March 16th meeting

US Covid-19:

• 207 new infections/100K people(last 7 days total) +16/100K people
• 39% of Jan. 7th, 2021 peak(highest daily avg. new infections) +3.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -95 open in Japan 
• China A50 Futures: Indicating -59 open in China

• DAX Futures: Indicating -13 open in Germany

Portfolio:

• Slightly Higher: On gains in my medical/tech sector longs and emerging market shorts
  

• Disclosed Trades:  None
  

• Market Exposure:  75% Net Long