Stocks Reversing Slightly Lower into Afternoon on Policy-Induced Labor/Product Shortages, US Stagflation Fears, Less Dovish Fed Commentary, Tech/Pharma Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 19.4 -3.0%
• Bloomberg Global Risk On/Risk Off Index 3,342.0 -33.0 points

• Euro/Yen Carry Return Index 135.10 +.06%

• Emerging Markets Currency Volatility(VXY) 8.9 +.11%

• S&P 500 Implied Correlation 56.2 +.21%

• ISE Sentiment Index 111.0  +21.0 points
  

• Total Put/Call .76 -22.5%

• NYSE Arms 1.15 -1.7%

Credit Investor Angst:

• North American Investment Grade CDS Index 54.54 +1.2%
  

• US Energy High-Yield OAS 372.03-.39%

• European Financial Sector CDS Index 60.36 +.57%

• Italian/German 10Y Yld Spread 101.0 -3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 94.17 -.84%
  

• Emerging Market CDS Index 188.92 +3.17%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 34.15 +.95%

• 2-Year Swap Spread 12.25 +1.5 basis points
  

• TED Spread 7.5 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -18.75 unch.
  
• MBS  5/10 Treasury Spread  72.5 +.75 basis point
  
• IHS Markit CMBX BBB- 6 71.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 58.58 +.2%
• 3-Month T-Bill Yield .04% -1.0 basis point
  

• Yield Curve 126.0 -1.0 basis point
  

• China Iron Ore Spot 120.0 USD/Metric Tonne -1.9%

• Citi US Economic Surprise Index -22.1 +.3 point

• Citi Eurozone Economic Surprise Index -75.1 -.3 point
  

• Citi Emerging Markets Economic Surprise Index -4.3 -2.1 points

• 10-Year TIPS Spread 2.49 -2.0 basis points
• 100.0% chance of no change at Dec. 15th meeting, 97.5% chance of no change at Jan. 26th meeting

US Covid-19:

• 187 new infections/100K people(last 7 days total) -15/100K people
• 35% of Jan. 7th, 2021 peak(highest daily avg. new infections) -3.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +110 open in Japan 
• China A50 Futures: Indicating +!0 open in China

• DAX Futures: Indicating +7 open in Germany

Portfolio:

• Slightly Lower: On losses in my tech sector longs and index hedges
  

• Disclosed Trades:  None
  

• Market Exposure: 25% Net Long