Stocks Rising into Final Hour on Stable Long-Term Rates, Declining US Covid Cases, Bargain-Hunting, Food/Utility Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 23.2 -.3%
• Bloomberg Global Risk On/Risk Off Index 2,803.0 -92.0 points

• Euro/Yen Carry Return Index 134.08 -.27%

• Emerging Markets Currency Volatility(VXY) 8.9 +.11%.

• S&P 500 Implied Correlation 57.9 +3.2%

• ISE Sentiment Index 119.0  +43.0 points
  

• Total Put/Call .89 -16.8%

• NYSE Arms 1.07 +13.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.83 -.17%
  

• US Energy High-Yield OAS 374.67 -.19%

• European Financial Sector CDS Index 56.27 -.78%

• Italian/German 10Y Yld Spread 104.0 -1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 86.56 -.9%
  

• Emerging Market CDS Index 180.03 -.67%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 36.92 -.01%

• 2-Year Swap Spread 8.5 -.25 basis point
  

• TED Spread 10.25 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -16.75 -13.75 basis points
  
• MBS  5/10 Treasury Spread  72.25 -.25 basis point
  
• IHS Markit CMBX BBB- 6 71.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 58.59 -.37%
• 3-Month T-Bill Yield .03% unch.
  

• Yield Curve 123.0 +1.0 basis point
  

• China Iron Ore Spot 120.45 USD/Metric Tonne +5.8%

• Citi US Economic Surprise Index -34.6 +.1 point

• Citi Eurozone Economic Surprise Index -58.8 +4.1 points
  

• Citi Emerging Markets Economic Surprise Index -1.3 -.2 point

• 10-Year TIPS Spread 2.38 -1.0 basis point
• 100.0% chance of no change at Dec. 15th meeting, 100.0% chance of no change at Jan. 26th meeting

US Covid-19:

• 246 new infections/100K people(last 7 days total) -4/100K people
• 46% of Jan. 7th, 2021 peak(highest daily avg. new infections) -1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +286 open in Japan 
• China A50 Futures: Indicating -38 open in China

• DAX Futures: Indicating -13 open in Germany

Portfolio:

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  

• Market Exposure: Moved to 75% Net Long