Stocks Mostly Lower into Final Hour on Policy-Induced Labor/Product Shortages, US Stagflation Fears, Rising China Debt Angst, Gambling/Medical Sector Weakness

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) 18.5 -5.6%
• Bloomberg Global Risk On/Risk Off Index 3,327.0 +202.0 points

• Euro/Yen Carry Return Index 134.06 +.69%

• Emerging Markets Currency Volatility(VXY) 8.87 -.22%

• S&P 500 Implied Correlation 54.0 -3.6%

• ISE Sentiment Index 108.0  +16.0 points
  

• Total Put/Call 1.05 +10.5%

• NYSE Arms .58 -19.4%

Credit Investor Angst:

• North American Investment Grade CDS Index 53.71 +.75%
  

• US Energy High-Yield OAS 373.39 -.66%

• European Financial Sector CDS Index 58.69 +2.0%

• Italian/German 10Y Yld Spread 103.0 -1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 88.64 +2.0%
  

• Emerging Market CDS Index 182.95 +1.2%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 34.75 -1.8%

• 2-Year Swap Spread 11.0 +.5 basis point
  

• TED Spread 7.75 -.75 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -18.75 -1.0 basis point
  
• MBS  5/10 Treasury Spread  71.25 +.25 basis point
  
• IHS Markit CMBX BBB- 6 71.75 +.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 58.63 -.21%
• 3-Month T-Bill Yield .04% -1.0 basis point
  

• Yield Curve 127.0 +3.0 basis points
  

• China Iron Ore Spot 127.30 USD/Metric Tonne +4.5%

• Citi US Economic Surprise Index -17.4 -1.9 points

• Citi Eurozone Economic Surprise Index -76.7 -1.3 points
  

• Citi Emerging Markets Economic Surprise Index -4.5 +1.6 points

• 10-Year TIPS Spread 2.51 +4.0 basis points
• 99.5% chance of no change at Dec. 15th meeting, 97.1% chance of no change at Jan. 26th meeting

US Covid-19:

• 211 new infections/100K people(last 7 days total) -3/100K people
• 40% of Jan. 7th, 2021 peak(highest daily avg. new infections) unch.
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +92 open in Japan 
• China A50 Futures: Indicating +28 open in China

• DAX Futures: Indicating -13 open in Germany

Portfolio:

• Slightly Lower: On losses in my tech/medical/consumer discretionary sector longs
  

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

• Market Exposure: Moved to 100% Net Long