Stocks Surging into Final Hour on US Economic Optimism, Declining US Covid Cases, Oil Gain, Tech/Financial Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Around Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 20.8 -9.6%
• Bloomberg Global Risk On/Risk Off Index 3,007.0 +240.0 points

• Euro/Yen Carry Return Index 133.42 +.31%

• Emerging Markets Currency Volatility(VXY) 8.9 +.2%

• S&P 500 Implied Correlation 56.1 -1.0%

• ISE Sentiment Index 93.0  -8.0 points
  

• Total Put/Call .83 -15.3%

• NYSE Arms .77 +20.3%

Credit Investor Angst:

• North American Investment Grade CDS Index 53.20 +.01%
  

• US Energy High-Yield OAS 375.93 -.74%

• European Financial Sector CDS Index 57.28 -1.11%

• Italian/German 10Y Yld Spread 105.0 +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 88.75 +4.8%
  

• Emerging Market CDS Index 182.48 -.66%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 35.91 -1.31%

• 2-Year Swap Spread 10.0 +.5 basis point
  

• TED Spread 9.5 -.75 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -16.25 +.25 basis point
  
• MBS  5/10 Treasury Spread  71.25 +.75 basis point
  
• IHS Markit CMBX BBB- 6 71.5 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 58.78 -.14%
• 3-Month T-Bill Yield .03% unch.
  

• Yield Curve 121.0 unch.
  

• China Iron Ore Spot 117.65 USD/Metric Tonne +1.3%

• Citi US Economic Surprise Index -14.6 +5.8 points

• Citi Eurozone Economic Surprise Index -54.1 +.5 point
  

• Citi Emerging Markets Economic Surprise Index .6 -1.1 points

• 10-Year TIPS Spread 2.45 +6.0 basis points
• 100.0% chance of no change at Dec. 15th meeting, 97.6% chance of no change at Jan. 26th meeting

US Covid-19:

• 221 new infections/100K people(last 7 days total) -8/100K people
• 42% of Jan. 7th, 2021 peak(highest daily avg. new infections) -1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +488 open in Japan 
• China A50 Futures: Indicating -368 open in China

• DAX Futures: Indicating -14 open in Germany

Portfolio:

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

• Disclosed Trades:  Covered some of my (IWM)/(QQQ) hedges, took profits in some biotech longs and added some commodity longs
  

• Market Exposure: Moved to 100% Net Long