Stocks Rising into Final Hour on Earnings Optimism, Stable Long-Term Rates, Short-Covering, Tech/Alt Energy Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Around Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 16.3 -4.1%
• Bloomberg Global Risk On/Risk Off Index 3,325.0 -13.0 points

• Euro/Yen Carry Return Index 136.69 +.38%

• Emerging Markets Currency Volatility(VXY) 9.11 -.11%

• S&P 500 Implied Correlation 53.2 -2.9%

• ISE Sentiment Index 131.0  +44.0 points
  

• Total Put/Call .64 -23.8%

• NYSE Arms .92 -46.2%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.37 -.46%
  

• US Energy High-Yield OAS 353.04 +.01%

• European Financial Sector CDS Index 56.99 +2.8%

• Italian/German 10Y Yld Spread 119.0 +7.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 80.02 +.38%
  

• Emerging Market CDS Index 181.37 +.01%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 33.62 -.99%

• 2-Year Swap Spread 17.25 +1.0 basis point
  

• TED Spread 9.0 +.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -23.25 -.75 basis point
  
• MBS  5/10 Treasury Spread  65.0 -1.25 basis points
  
• IHS Markit CMBX BBB- 6 72.0 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 58.38 -.02%
• 3-Month T-Bill Yield .05% unch.
  

• Yield Curve 103.0 -13.0 basis points
  

• China Iron Ore Spot 110.0 USD/Metric Tonne -3.7%

• Citi US Economic Surprise Index -19.5 -7.0 points

• Citi Eurozone Economic Surprise Index -56.0 +10.5 points
  

• Citi Emerging Markets Economic Surprise Index -5.1 +2.7 points

• 10-Year TIPS Spread 2.61 -6.0 basis points
• 97.8% chance of no change at Dec. 15th meeting, 93.0% chance of no change at Jan. 26th meeting

US Covid-19:

• 160 new infections/100K people(last 7 days total) +10/100K people
• 30% of Jan. 7th, 2021 peak(highest daily avg. new infections) +2.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +30 open in Japan 
• China A50 Futures: Indicating +76 open in China

• DAX Futures: Indicating -28 open in Germany

Portfolio:

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

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

• Market Exposure:  Moved to 100% Net Long