Stocks Mostly Lower into Final Hour on Higher Long-Term Rates, Oil Decline, US Dollar Strength, Commodity/Industrial Sector Weakness

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) 17.4 +5.8%
• Bloomberg Global Risk On/Risk Off Index 3,163.0 +60.0 points

• Euro/Yen Carry Return Index 134.84 +.18%

• Emerging Markets Currency Volatility(VXY) 8.55 unch.

• S&P 500 Implied Correlation 52.6 +4.1%

• ISE Sentiment Index 115.0  +6.0 points
  

• Total Put/Call .85 -2.3%

• NYSE Arms .59 -53.5%

Credit Investor Angst:

• North American Investment Grade CDS Index 47.13 +.96%
  

• US Energy High-Yield OAS 396.0 +.19%

• European Financial Sector CDS Index 51.95 +1.23%

• Italian/German 10Y Yld Spread 108.0 +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 64.33 -.40%
  

• Emerging Market CDS Index 152.0 +1.1%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 38.30 -.05%

• 2-Year Swap Spread 9.0 unch.

• TED Spread 8.0 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -4.0 -1.0 basis point
  
• MBS  5/10 Treasury Spread  72.5 -1.5 basis points
  
• IHS Markit CMBX BBB- 6 72.5 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 60.42 -.32%
• 3-Month T-Bill Yield .03% -1.0 basis point
  

• Yield Curve 114.0 +6.0 basis points
  

• China Iron Ore Spot 136.35 USD/Metric Tonne -.17%

• Citi US Economic Surprise Index -59.4 -5.4 points

• Citi Eurozone Economic Surprise Index -16.9 +5.3 points
  

• Citi Emerging Markets Economic Surprise Index 14.5 -1.2 points

• 10-Year TIPS Spread 2.36 +2.0 basis points
• 98.3% chance of no change at Nov. 3rd meeting, 98.3% chance of no change at Dec. 15th meeting

US Covid-19:

• 289 new infections/100K people(last 7 days total) -66/100K people
• 54% of Jan. 7th, 2021 peak(highest daily avg. new infections) -13.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +14 open in Japan 
• China A50 Futures: Indicating +5 open in China

• DAX Futures: Indicating -18 open in Germany

Portfolio:

• Lower: On losses in my consumer discretionary/industrial sector longs and emerging market shorts
  

• Disclosed Trades: None
  

• Market Exposure: 100% Net Long