Stocks Rising into Final Hour on Diminished US Tax/Spend Fears, Earnings Optimism, Stable Long-Term Rates, Healthcare/Homebuilding Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 15.6 -.5%
• Bloomberg Global Risk On/Risk Off Index 3,637.0 +33.0 points

• Euro/Yen Carry Return Index 137.33 +.05%

• Emerging Markets Currency Volatility(VXY) 8.91 -.22%

• S&P 500 Implied Correlation 52.6 -1.6%

• ISE Sentiment Index 76.0  -27.0 points
  

• Total Put/Call .71 -4.0%

• NYSE Arms .82 unch.

Credit Investor Angst:

• North American Investment Grade CDS Index 51.21 -.57%
  

• US Energy High-Yield OAS 350.17 -.33%

• European Financial Sector CDS Index 56.13 -.8%

• Italian/German 10Y Yld Spread 104.0 -1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 82.9 -1.5%
  

• Emerging Market CDS Index 176.06 -1.2%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 34.93 +.17%

• 2-Year Swap Spread 17.0 +.75 basis point
  

• TED Spread 8.75 +.5 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -20.0 +1.75 basis points
  
• MBS  5/10 Treasury Spread  67.25 unch.
  
• IHS Markit CMBX BBB- 6 71.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 58.92 +.39%
• 3-Month T-Bill Yield .05% +1.0 basis point
  

• Yield Curve 125.0 +8.0 basis points
  

• China Iron Ore Spot 124.25 USD/Metric Tonne +.3%

• Citi US Economic Surprise Index -36.8 +1.7 points

• Citi Eurozone Economic Surprise Index -74.4 -.6 point
  

• Citi Emerging Markets Economic Surprise Index -4.6 -.2 point

• 10-Year TIPS Spread 2.59 +4.0 basis points
• 100.0% chance of no change at Dec. 15th meeting, 95.2% chance of no change at Jan. 26th meeting

US Covid-19:

• 169 new infections/100K people(last 7 days total) -8/100K people
• 32% of Jan. 7th, 2021 peak(highest daily avg. new infections) -1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +85 open in Japan 
• China A50 Futures: Indicating +19 open in China

• DAX Futures: Indicating -17 open in Germany

Portfolio:

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

• Disclosed Trades:  None
  

• Market Exposure:  100% Net Long