Stocks Reversing Slightly Higher into Final Hour on Stable Long-Term Rates, Declining US Covid Cases, Technical Buying, Tech/Road & Rail Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 21.9 +3.0%
• Bloomberg Global Risk On/Risk Off Index 2,917.0 -35.0 points

• Euro/Yen Carry Return Index 132.89 -.38%

• Emerging Markets Currency Volatility(VXY) 9.0 +1.5%

• S&P 500 Implied Correlation 57.5 +1.8%

• ISE Sentiment Index 96.0  -3.0 points
  

• Total Put/Call 1.0 +21.4%

• NYSE Arms 1.2 +43.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 53.284 +.33%
  

• US Energy High-Yield OAS 378.76 +.62%

• European Financial Sector CDS Index 58.76 +2.6%

• Italian/German 10Y Yld Spread 107.0 +2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 90.37 +2.2%
  

• Emerging Market CDS Index 185.32 +1.9%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 35.82 -.12%

• 2-Year Swap Spread 10.0 unch.
  

• TED Spread 9.0 -.5 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -16.75 -.5 basis point
  
• MBS  5/10 Treasury Spread  72.75 +1.5 basis points
  
• IHS Markit CMBX BBB- 6 71.5 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 58.67 -.19%
• 3-Month T-Bill Yield .04% +1.0 basis point
  

• Yield Curve 126.0 +5.0 basis points
  

• China Iron Ore Spot 117.5 USD/Metric Tonne -.2%

• Citi US Economic Surprise Index -14.9 -.3 point

• Citi Eurozone Economic Surprise Index -63.9 -9.8 points
  

• Citi Emerging Markets Economic Surprise Index -4.4 -5.0 points

• 10-Year TIPS Spread 2.45 unch.
• 100.0% chance of no change at Dec. 15th meeting, 100.0% chance of no change at Jan. 26th meeting

US Covid-19:

• 218 new infections/100K people(last 7 days total) -3/100K people
• 41% of Jan. 7th, 2021 peak(highest daily avg. new infections) -1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +232 open in Japan 
• China A50 Futures: Indicating -351 open in China

• DAX Futures: Indicating +65 open in Germany

Portfolio:

• Slightly Higher: On gains in my tech/medical/consumer discretiony sector longs
  

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

• Market Exposure: Moved to 100% Net Long