Stocks Reversing Modestly Higher into Final Hour on Lower Long-Term Rates, Seasonal Strength, Short-Covering, Tech/Energy Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 19.5 +.4%
• Bloomberg Global Risk On/Risk Off Index 3,077.0 -29.0 points

• Euro/Yen Carry Return Index 133.44 -.23%

• Emerging Markets Currency Volatility(VXY) 10.8 +1.0%

• S&P 500 Implied Correlation 49.1 n/a

• ISE Sentiment Index 86.0  -14.0 points
  

• Total Put/Call .86 +2.4%

• NYSE Arms .73 +17.7%

Credit Investor Angst:

• North American Investment Grade CDS Index 53.18 +.54%
  

• US Energy High-Yield OAS 399.78 +.26%

• European Financial Sector CDS Index 61.09 +1.1%

• Italian/German 10Y Yld Spread 130.0 +2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 86.75 +1.7%
  

• Emerging Market CDS Index 201.91 +1.4%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 33.48 unch.

• 2-Year Swap Spread 23.25 +.5 basis point
  

• TED Spread 13.0 +1.0 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -29.25 +.5 basis point
  
• MBS  5/10 Treasury Spread  67.0 +2.0 basis points
  
• IHS Markit CMBX BBB- 6 72.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 54.90 +1.0%
• 3-Month T-Bill Yield .06% +1.0 basis point
  

• Yield Curve 104.0 unch.
  

• China Iron Ore Spot 105.95 USD/Metric Tonne +4.6%

• Citi US Economic Surprise Index 26.5 -4.6 points

• Citi Eurozone Economic Surprise Index -15.6 +1.1 points
  

• Citi Emerging Markets Economic Surprise Index -15.4 +1.2 points

• 10-Year TIPS Spread 2.62 unch.
• 95.3% chance of no change at Jan. 26th meeting, 70.6% chance of no change at March 16th meeting

US Covid-19:

• 210 new infections/100K people(last 7 days total) +7/100K people
• 39% of Jan. 7th, 2021 peak(highest daily avg. new infections) +1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +100 open in Japan 
• China A50 Futures: Indicating -34 open in China

• DAX Futures: Indicating +10 open in Germany

Portfolio:

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

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

• Market Exposure:  Moved to 100% Net Long