Stocks Reversing Slightly Higher into Afternoon on Diminishing Fed Taper Worries, Declining Virus Lockdown Fears, US Dollar Weakness, Tech/Metals & Mining Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 16.4 +.12%
• Bloomberg Global Risk On/Risk Off Index 2,974.0 +17.0 points

• Euro/Yen Carry Return Index 134.60 -.11%

• Emerging Markets Currency Volatility(VXY) 8.55 unch.

• S&P 500 Implied Correlation 50.8 +1.5%

• ISE Sentiment Index 113.0  +13.0 points
  

• Total Put/Call .81 +20.9%

• NYSE Arms 1.16 +21.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 46.61 +.59%
  

• US Energy High-Yield OAS 397.76 -.88%

• European Financial Sector CDS Index 52.08 +.79%

• Italian/German 10Y Yld Spread 107.0 +2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 64.43 -.43%
  

• Emerging Market CDS Index 150.11 +.02%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 38.35 -.25%

• 2-Year Swap Spread 9.0 unch.

• TED Spread 8.0 -.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -3.0 unch.
  
• MBS  5/10 Treasury Spread  74.0 -1.5 basis points
  
• IHS Markit CMBX BBB- 6 72.5 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 60.64 +.14%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 108.0 -1.0 basis point
  

• China Iron Ore Spot 144.1 USD/Metric Tonne +.5%

• Citi US Economic Surprise Index -54.0 -2.2 points

• Citi Eurozone Economic Surprise Index -22.2 -11.3 points
  

• Citi Emerging Markets Economic Surprise Index 15.7 -2.8 points

• 10-Year TIPS Spread 2.34 unch.
• 98.3% chance of no change at Nov. 3rd meeting, 98.3% chance of no change at Dec. 15th meeting

US Covid-19:

• 355 new infections/100K people(last 7 days total) 0/100K people
• 67% of Jan. 7th, 2021 peak(highest daily avg. new infections) unch.
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +407 open in Japan 
• China A50 Futures: Indicating +43 open in China

• DAX Futures: Indicating -5 open in Germany

Portfolio:

• Higher: On gains in my tech sector longs and index hedges
  

• Disclosed Trades: None
  

• Market Exposure: 100% Net Long