Stocks Surging into Final Hour on Lower Long-Term Rates, Declining Covid Cases/Fears, Oil Gain, Commodity/Transport Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 21.1 -8.9%
• Bloomberg Global Risk On/Risk Off Index 2,954.0 +110.0 points

• Euro/Yen Carry Return Index 132.90 -.04%

• Emerging Markets Currency Volatility(VXY) 8.8 unch.

• S&P 500 Implied Correlation 56.9 -3.9%

• ISE Sentiment Index 114.0  +68.0 points
  

• Total Put/Call .93 -11.4%

• NYSE Arms .68 -56.4%

Credit Investor Angst:

• North American Investment Grade CDS Index 52.24 -1.59%
  

• US Energy High-Yield OAS 379.57 +.73%

• European Financial Sector CDS Index 56.66 +.43%

• Italian/German 10Y Yld Spread 104.0 -2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 84.27 -1.0%
  

• Emerging Market CDS Index 181.76 -.1%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 36.85 -.01%

• 2-Year Swap Spread 10.75 +.75 basis point
  

• TED Spread 9.75 -.5 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -15.75 -.5 basis point
  
• MBS  5/10 Treasury Spread  71.0 +.25 basis point
  
• IHS Markit CMBX BBB- 6 71.5 -.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 58.99 +.53%
• 3-Month T-Bill Yield .03% unch.
  

• Yield Curve 120.0 -2.0 basis points
  

• China Iron Ore Spot 121.0 USD/Metric Tonne +3.6%

• Citi US Economic Surprise Index -23.8 +9.4 points

• Citi Eurozone Economic Surprise Index -59.7 -1.1 points
  

• Citi Emerging Markets Economic Surprise Index 3.7 +2.0 points

• 10-Year TIPS Spread 2.38 unch.
• 100.0% chance of no change at Dec. 15th meeting, 97.6% chance of no change at Jan. 26th meeting

US Covid-19:

• 240 new infections/100K people(last 7 days total) -2/100K people
• 45% of Jan. 7th, 2021 peak(highest daily avg. new infections) unch.
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +289 open in Japan 
• China A50 Futures: Indicating -264 open in China

• DAX Futures: Indicating +61 open in Germany

Portfolio:

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

• Disclosed Trades:  Covered some of my (IWM)/(QQQ) hedges and some of my emerging market shorts
  

• Market Exposure: Moved to 100% Net Long