Stocks Higher into Final Hour on Earnings Optimism, Declining China Debt Bubble-Bursting Angst, Short-Covering, Tech/Healthcare Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 15.6 -4.2%
• Bloomberg Global Risk On/Risk Off Index 3,598.0 +166.0 points

• Euro/Yen Carry Return Index 137.29 +.25%

• Emerging Markets Currency Volatility(VXY) 8.87 +.45%

• S&P 500 Implied Correlation 52.5 -4.8%

• ISE Sentiment Index 130.0  +12.0 points
  

• Total Put/Call .74 -7.5%

• NYSE Arms .76 -30.9%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.44 -1.3%
  

• US Energy High-Yield OAS 351.09 -1.3%

• European Financial Sector CDS Index 56.58 -1.8%

• Italian/German 10Y Yld Spread 105.0 unch.
  

• Asia Ex-Japan Investment Grade CDS Index 84.15 -1.2%
  

• Emerging Market CDS Index 177.74 -2.2%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 34.92 -.4%

• 2-Year Swap Spread 16.25 +.5 basis point
  

• TED Spread 8.25 +.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -21.75 +1.0 basis point
  
• MBS  5/10 Treasury Spread  67.25 -.75 basis point
  
• IHS Markit CMBX BBB- 6 71.75 +.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 58.68 +.19%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 117.0 -2.0 basis points
  

• China Iron Ore Spot 123.4 USD/Metric Tonne +.8%

• Citi US Economic Surprise Index -38.5 -6.5 points

• Citi Eurozone Economic Surprise Index -73.8 -.3 point
  

• Citi Emerging Markets Economic Surprise Index -4.4 unch.

• 10-Year TIPS Spread 2.55 +1.0 basis point
• 99.5% chance of no change at Dec. 15th meeting, 94.5% chance of no change at Jan. 26th meeting

US Covid-19:

• 177 new infections/100K people(last 7 days total) -0/100K people
• 33% of Jan. 7th, 2021 peak(highest daily avg. new infections) unch.
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +165 open in Japan 
• China A50 Futures: Indicating +27 open in China

• DAX Futures: Indicating -33 open in Germany

Portfolio:

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

• Disclosed Trades:  None
  

• Market Exposure:  100% Net Long