Stocks Rising into Final Hour on Stable Long-Term Rates, Earnings Optimism, Short-Covering, Commodity/Retail Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 15.2 -1.4%
• Bloomberg Global Risk On/Risk Off Index 3,673.0 +36.0 points

• Euro/Yen Carry Return Index 136.13 -.17%

• Emerging Markets Currency Volatility(VXY) 9.21 +.77%

• S&P 500 Implied Correlation 51.9 -.9%

• ISE Sentiment Index 140.0  +51.0 points
  

• Total Put/Call .66 -21.4%

• NYSE Arms 1.04 -3.7%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.61 -.78%
  

• US Energy High-Yield OAS 351.79 +1.2%

• European Financial Sector CDS Index 56.55 -.25%

• Italian/German 10Y Yld Spread 108.0 -2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 83.32 -.18%
  

• Emerging Market CDS Index 180.86 -1.8%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 34.28 -.36%

• 2-Year Swap Spread 17.5 +.25 basis point
  

• TED Spread 7.5 +.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -22.75 -.25 basis point
  
• MBS  5/10 Treasury Spread  68.5 -2.0 basis points
  
• IHS Markit CMBX BBB- 6 71.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 58.46 +.54%
• 3-Month T-Bill Yield .05% unch.
  

• Yield Curve 119.0 -4.0 basis points
  

• China Iron Ore Spot 118.55 USD/Metric Tonne -1.3%

• Citi US Economic Surprise Index -27.4 +5.2 points

• Citi Eurozone Economic Surprise Index -68.1 -.4 point
  

• Citi Emerging Markets Economic Surprise Index -4.8 -1.1 points

• 10-Year TIPS Spread 2.67 +3.0 basis points
• 95.6% chance of no change at Dec. 15th meeting, 90.9% chance of no change at Jan. 26th meeting

US Covid-19:

• 155 new infections/100K people(last 7 days total) -6/100K people
• 29% of Jan. 7th, 2021 peak(highest daily avg. new infections) -1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +280 open in Japan 
• China A50 Futures: Indicating -17 open in China

• DAX Futures: Indicating +18 open in Germany

Portfolio:

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

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

• Market Exposure:  Moved to 100% Net Long