Stocks Rising into Afternoon on Stable Long-Term Rates, Diminished China Debt Bubble Bursting Fears, Technical Buying, Tech/Homebuilding Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 16.4 -7.4%
• Bloomberg Global Risk On/Risk Off Index 3,148.0 +175.0 points

• Euro/Yen Carry Return Index 134.38 -.21%

• Emerging Markets Currency Volatility(VXY) 9.0 +.9%

• S&P 500 Implied Correlation 48.7 -3.9%

• ISE Sentiment Index 151.0  +31.0 points
  

• Total Put/Call .72 -2.7%

• NYSE Arms 1.35 +95.7%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.1 -.7%
  

• US Energy High-Yield OAS 378.03 -1.8%

• European Financial Sector CDS Index 56.70 -.4%

• Italian/German 10Y Yld Spread 121.0 +2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 88.5 -1.1%
  

• Emerging Market CDS Index 178.68 -.6%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 33.6 +1.5%

• 2-Year Swap Spread 24.0 +1.5 basis points
  

• TED Spread 11.0 +.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -21.75 -.25 basis point
  
• MBS  5/10 Treasury Spread  64.0 +.25 basis point
  
• IHS Markit CMBX BBB- 6 73.0 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 57.64 -.34%
• 3-Month T-Bill Yield .05% unch.
  

• Yield Curve 103.0 unch.
  

• China Iron Ore Spot 89.15 USD/Metric Tonne -.4%

• Citi US Economic Surprise Index 10.7 -8.5 points

• Citi Eurozone Economic Surprise Index -47.3 +2.8 points
  

• Citi Emerging Markets Economic Surprise Index -27.0 -3.8 points

• 10-Year TIPS Spread 2.76 +5.0 basis points
• 95.0% chance of no change at Jan. 26th meeting, 80.3% chance of no change at March 16th meeting

US Covid-19:

• 155 new infections/100K people(last 7 days total) -7/100K people
• 29% of Jan. 7th, 2021 peak(highest daily avg. new infections) -2.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +101 open in Japan 
• China A50 Futures: Indicating +63 open in China

• DAX Futures: Indicating -16 open in Germany

Portfolio:

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

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

• Market Exposure:  Moved to 100% Net Long