Stocks Higher into Final Hour on Diminished China Bubble-Bursting Fears, Declining US Covid Cases, US Debt Ceiling Can-Kicking, Tech/Consumer Discretionary Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 19.1 -9.0%
• Bloomberg Global Risk On/Risk Off Index 3,176.0 +199.0 points

• Euro/Yen Carry Return Index 133.16 +.19%

• Emerging Markets Currency Volatility(VXY) 8.88 -1.0%

• S&P 500 Implied Correlation 56.0 -2.2%

• ISE Sentiment Index 95.0  -18.0 points
  

• Total Put/Call .91 -7.1%

• NYSE Arms .56 -46.7%

Credit Investor Angst:

• North American Investment Grade CDS Index 52.93 -1.48%
  

• US Energy High-Yield OAS 375.54 -1.0%

• European Financial Sector CDS Index 57.54 -2.1%

• Italian/German 10Y Yld Spread 104.0 -3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 86.70 -4.1%
  

• Emerging Market CDS Index 180.51 -2.6%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 35.39 -1.32%

• 2-Year Swap Spread 10.5 +.5 basis point
  

• TED Spread 8.5 -.5 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -17.75 -1.0 basis point
  
• MBS  5/10 Treasury Spread  71.0 -1.75 basis points
  
• IHS Markit CMBX BBB- 6 71.55 +.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 58.78 +.15%
• 3-Month T-Bill Yield .05% +1.0 basis point
  

• Yield Curve 124.0 -2.0 basis points
  

• China Iron Ore Spot 118.25 USD/Metric Tonne +.5%

• Citi US Economic Surprise Index -15.5 -.6 point

• Citi Eurozone Economic Surprise Index -75.4 -11.5 points
  

• Citi Emerging Markets Economic Surprise Index -6.1 -1.7 points

• 10-Year TIPS Spread 2.47 +2.0 basis points
• 100.0% chance of no change at Dec. 15th meeting, 100.0% chance of no change at Jan. 26th meeting

US Covid-19:

• 214 new infections/100K people(last 7 days total) -4/100K people
• 40% of Jan. 7th, 2021 peak(highest daily avg. new infections) -1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +417 open in Japan 
• China A50 Futures: Indicating -63 open in China

• DAX Futures: Indicating -29 open in Germany

Portfolio:

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

• Disclosed Trades:  None
  

• Market Exposure: 100% Net Long