Stocks Surging into Final Hour on Diminished Tax Hike Fears, Oil Gain, Technical Buying, Energy/Financial Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 18.6 -47%
• Bloomberg Global Risk On/Risk Off Index 3,005.0 +87.0 points

• Euro/Yen Carry Return Index 133.40 -.2%

• Emerging Markets Currency Volatility(VXY) 8.44 -.6%.

• S&P 500 Implied Correlation 54.0 -.2%

• ISE Sentiment Index 108.0  -4.0 points
  

• Total Put/Call .86 -5.5%

• NYSE Arms .84 -42.9%

Credit Investor Angst:

• North American Investment Grade CDS Index 46.29 -1.25%
  

• US Energy High-Yield OAS 381.28 -1.53%

• European Financial Sector CDS Index 51.10 +.43%

• Italian/German 10Y Yld Spread 100.0 +1.25 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 66.99 +2.0%
  

• Emerging Market CDS Index 152.93 -.86%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 38.1 +.01%

• 2-Year Swap Spread 10.5 +.25 basis point
  

• TED Spread 8.25 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -4.5 -1.0 basis point
  
• MBS  5/10 Treasury Spread  73.0 -.5 basis point
  
• IHS Markit CMBX BBB- 6 72.25 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 60.11 +.11%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 108.0 -4.0 basis points
  

• China Iron Ore Spot 112.50 USD/Metric Tonne -1.1%

• Citi US Economic Surprise Index -61.7 +6.1 points

• Citi Eurozone Economic Surprise Index -17.9 +2.9 points
  

• Citi Emerging Markets Economic Surprise Index 4.7 -7.0 points

• 10-Year TIPS Spread 2.35 +1.0 basis point
• 100.0% chance of no change at Nov. 3rd meeting, 100.0% chance of no change at Dec. 15th meeting

US Covid-19:

• 332 new infections/100K people(last 7 days total) -46/100K people
• 62% of Jan. 7th, 2021 peak(highest daily avg. new infections) -9.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -111 open in Japan 
• China A50 Futures: Indicating +20 open in China

• DAX Futures: Indicating +71 open in Germany

Portfolio:

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

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

• Market Exposure: Moved to 75% Net Long