Stocks Reversing Slightly Lower into Final Hour on US Tax & Spend Worries, Policy-Induced Labor/Product Shortages, Technical Selling, Energy/Financial Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Around Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 15.6 -2.3%
• Bloomberg Global Risk On/Risk Off Index 3,485.0 -151.0 points

• Euro/Yen Carry Return Index 136.23 -.18%

• Emerging Markets Currency Volatility(VXY) 9.11 -.76%

• S&P 500 Implied Correlation 51.6 +2.4%

• ISE Sentiment Index 96.0  -21.0 points
  

• Total Put/Call .80 -4.8%

• NYSE Arms 1.34 +1.5%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.0 -.32%
  

• US Energy High-Yield OAS 351.49 +.30%

• European Financial Sector CDS Index 55.43 -.46%

• Italian/German 10Y Yld Spread 112.0 +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 79.65 -2.86%
  

• Emerging Market CDS Index 179.42 -.08%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 33.89 +.07%

• 2-Year Swap Spread 16.25 -1.25 basis points
  

• TED Spread 8.75 +.75 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -22.5 -1.25 basis points
  
• MBS  5/10 Treasury Spread  66.25 -.75 basis point
  
• IHS Markit CMBX BBB- 6 72.0 +.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 58.46 +.04%
• 3-Month T-Bill Yield .05% unch.
  

• Yield Curve 116.0 -4.0 basis points
  

• China Iron Ore Spot 115.80 USD/Metric Tonne -1.7%

• Citi US Economic Surprise Index -12.5 +14.9 points

• Citi Eurozone Economic Surprise Index -66.5 +1.7 points
  

• Citi Emerging Markets Economic Surprise Index -7.8 -3.0 points

• 10-Year TIPS Spread 2.67 -2.0 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:

• 150 new infections/100K people(last 7 days total) -5/100K people
• 28% of Jan. 7th, 2021 peak(highest daily avg. new infections) -1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -243 open in Japan 
• China A50 Futures: Indicating -16 open in China

• DAX Futures: Indicating +1 open in Germany

Portfolio:

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

• Disclosed Trades:  Added to my (IWM)/(QQQ) hedges
  

• Market Exposure:  Moved to 75% Net Long