Stocks Surging into Final Hour on Lower Long-Term Rates, Earnings Optimism, Technical Buying, Tech/Healthcare Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 17.0 -8.5%
• Bloomberg Global Risk On/Risk Off Index 3,275.0 +56.0 points

• Euro/Yen Carry Return Index 135.89 +.32%

• Emerging Markets Currency Volatility(VXY) 8.84 -.79%

• S&P 500 Implied Correlation 54.1 -5.8%

• ISE Sentiment Index 107.0  +1.0 point
  

• Total Put/Call .78 -12.4%

• NYSE Arms .99 -18.2%

Credit Investor Angst:

• North American Investment Grade CDS Index 52.6 -2.9%
  

• US Energy High-Yield OAS 365.41 -1.9%

• European Financial Sector CDS Index 57.85 -3.5%

• Italian/German 10Y Yld Spread 102.0 -1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 93.0 -.6%
  

• Emerging Market CDS Index 182.06 -2.0%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 34.52 +1.3%

• 2-Year Swap Spread 13.75 +.75 basis point
  

• TED Spread 8.75 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -20.5 -1.75 basis points
  
• MBS  5/10 Treasury Spread  69.0 -3.5 basis points
  
• IHS Markit CMBX BBB- 6 71.5 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 58.71 -.07%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 120.0 -3.0 basis points
  

• China Iron Ore Spot 120.7 USD/Metric Tonne +.2%

• Citi US Economic Surprise Index -19.3 +1.0 point

• Citi Eurozone Economic Surprise Index -73.8 +.2 point
  

• Citi Emerging Markets Economic Surprise Index -3.1 -1.1 points

• 10-Year TIPS Spread 2.5 +1.0 basis point
• 99.5% chance of no change at Dec. 15th meeting, 97.0% chance of no change at Jan. 26th meeting

US Covid-19:

• 188 new infections/100K people(last 7 days total) -3/100K people
• 35% of Jan. 7th, 2021 peak(highest daily avg. new infections) -1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +190 open in Japan 
• China A50 Futures: Indicating +2 open in China

• DAX Futures: Indicating +3 open in Germany

Portfolio:

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

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

• Market Exposure: Moved to 75% Net Long