Stocks Slightly Higher into Afternoon on US Economic Optimism, Diminished Virus Lockdown Fears, Short-Covering, Financial/Energy Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Around Even
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 16.5 -4.8%
• Bloomberg Global Risk On/Risk Off Index 2,826.0 +160.0 points

• Euro/Yen Carry Return Index 133.89 -.17%

• Emerging Markets Currency Volatility(VXY) 8.88 +1.8%

• S&P 500 Implied Correlation 47.6 +.6%

• ISE Sentiment Index 115.0  unch.
  

• Total Put/Call .91 +11.0%

• NYSE Arms .78 -2.5%

Credit Investor Angst:

• North American Investment Grade CDS Index 48.94 -1.6%
  

• US Energy High-Yield OAS 436.14 -.79%

• European Financial Sector CDS Index 53.0 -.74%

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

• Asia Ex-Japan Investment Grade CDS Index 90.0 -.01%
  

• Emerging Market CDS Index 164.73 +.74%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 38.06 +.05%

• 2-Year Swap Spread 9.25 +.75 basis point

• TED Spread 8.0 +.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -3.0 +.25 basis point
  
• MBS  5/10 Treasury Spread  74.0 -.25 basis point
  
• IHS Markit CMBX BBB- 6 73.5 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.48 -.63%
• 3-Month T-Bill Yield .05% unch.
  

• Yield Curve 103.0 +2.0 basis points
  

• China Iron Ore Spot 163.25 USD/Metric Tonne -.54%

• Citi US Economic Surprise Index -3.4 n/a

• Citi Eurozone Economic Surprise Index 26.3 -6.5 points
  

• Citi Emerging Markets Economic Surprise Index 40.9 +.9 point

• 10-Year TIPS Spread 2.35 +3.0 basis points
• 100.0% chance of no change at Nov. 3rd meeting, 100.0% chance of no change at Dec. 15th meeting

US Covid-19:

• 209 new infections/100K people(last 7 days total) +7/100K people
• 39% of Jan. 7th, 2021 peak(highest daily avg. new infections) +1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +90 open in Japan 
• China A50 Futures: Indicating -125 open in China

• DAX Futures: Indicating -5 open in Germany

Portfolio:

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

• Disclosed Trades: None
  

• Market Exposure: 100% Net Long