Stocks Reversing Slightly Higher into Final Hour on Earnings Optimism, Short-Covering, Technical Buying, 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) 15.5 -.3%
• Bloomberg Global Risk On/Risk Off Index 3,581.0 -40.0 points

• Euro/Yen Carry Return Index 136.62 -.59%

• Emerging Markets Currency Volatility(VXY) 9.07 +1.9%

• S&P 500 Implied Correlation 51.4 +.19%

• ISE Sentiment Index 128.0  +38.0 points
  

• Total Put/Call .75 -2.6%

• NYSE Arms 1.39 +76.9%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.69 +.84%
  

• US Energy High-Yield OAS 348.85 -.66%

• European Financial Sector CDS Index 56.62 +.87%

• Italian/German 10Y Yld Spread 104.0 unch.
  

• Asia Ex-Japan Investment Grade CDS Index 84.1 +1.4%
  

• Emerging Market CDS Index 180.99 +2.9%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 34.42 -1.3%

• 2-Year Swap Spread 16.75 +.25 basis point
  

• TED Spread 8.25 -.5 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -21.5 -1.5 basis points
  
• MBS  5/10 Treasury Spread  67.75 +.5 basis point
  
• IHS Markit CMBX BBB- 6 71.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 58.30 -.92%
• 3-Month T-Bill Yield .05% unch.
  

• Yield Curve 127.0 +2.0 basis points
  

• China Iron Ore Spot 117.15 USD/Metric Tonne -4.3%

• Citi US Economic Surprise Index -34.4 +2.4 points

• Citi Eurozone Economic Surprise Index -72.8 +1.6 points
  

• Citi Emerging Markets Economic Surprise Index -3.7 +.9 point

• 10-Year TIPS Spread 2.66 +7.0 basis points
• 100.0% chance of no change at Dec. 15th meeting, 92.6% chance of no change at Jan. 26th meeting

US Covid-19:

• 163 new infections/100K people(last 7 days total) -6/100K people
• 31% of Jan. 7th, 2021 peak(highest daily avg. new infections) -1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -98 open in Japan 
• China A50 Futures: Indicating -19 open in China

• DAX Futures: Indicating -1 open in Germany

Portfolio:

• Higher: On gains in my medical/consumer discretionary/tech sector longs and emerging market shorts
  

• Disclosed Trades:  None
  

• Market Exposure:  100% Net Long