Stocks Reversing Slightly Higher into Afternoon on Earnings Optimism, Stable Long-Term Rates, Declining China Debt Bubble-Bursting Angst, Consumer Discretionary/Tech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 16.4 +.3%
• Bloomberg Global Risk On/Risk Off Index 3,444.0 -6.0 points

• Euro/Yen Carry Return Index 136.82 +.09%

• Emerging Markets Currency Volatility(VXY) 8.82 +.6%

• S&P 500 Implied Correlation 55.6 +.6%

• ISE Sentiment Index 119.0  +13.0 points
  

• Total Put/Call .77 -19.4%

• NYSE Arms 1.05 +4.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 52.35 +.46%
  

• US Energy High-Yield OAS 357.45 -1.4%

• European Financial Sector CDS Index 57.63 +.88%

• Italian/German 10Y Yld Spread 105.0 +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 85.22 -2.5%
  

• Emerging Market CDS Index 182.75 +1.31%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 35.0 +.76%

• 2-Year Swap Spread 15.75 +1.5 basis points
  

• TED Spread 8.0 -.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -22.75 -.25 basis point
  
• MBS  5/10 Treasury Spread  68.0 +.75 basis point
  
• IHS Markit CMBX BBB- 6 71.75 +.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 58.63 -.27%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 119.0 +2.0 basis points
  

• China Iron Ore Spot 120.85 USD/Metric Tonne +.3%

• Citi US Economic Surprise Index -32.9 -10.8 points

• Citi Eurozone Economic Surprise Index -73.5 +.2 point
  

• Citi Emerging Markets Economic Surprise Index -4.4 -.1 point

• 10-Year TIPS Spread 2.54 -2.0 basis points
• 97.8% chance of no change at Dec. 15th meeting, 94.2% chance of no change at Jan. 26th meeting

US Covid-19:

• 177 new infections/100K people(last 7 days total) -8/100K people
• 33% of Jan. 7th, 2021 peak(highest daily avg. new infections) -2.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +80 open in Japan 
• China A50 Futures: Indicating -1 open in China

• DAX Futures: Indicating -17 open in Germany

Portfolio:

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

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

• Market Exposure: Moved to 100% Net Long