Stocks Rising into Afternoon on US Economic Optimism, Stable Long-Term Rates, Short-Covering, Tech/Medical Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Rising
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 16.2 -1.9%
• Bloomberg Global Risk On/Risk Off Index 3,282.0 +56.0 points

• Euro/Yen Carry Return Index 133.93 +.08%

• Emerging Markets Currency Volatility(VXY) 9.4 +2.8%

• S&P 500 Implied Correlation 48.8 +.2%

• ISE Sentiment Index 155.0  unch.
  

• Total Put/Call .73 -7.6%

• NYSE Arms 1.30 +73.3%

Credit Investor Angst:

• North American Investment Grade CDS Index 50.5 -.4%
  

• US Energy High-Yield OAS 380.65 -.47%

• European Financial Sector CDS Index 57.1 -.5%

• Italian/German 10Y Yld Spread 121.0 -1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 88.75 +.2%
  

• Emerging Market CDS Index 181.75 +1.1%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 33.31 -.1%

• 2-Year Swap Spread 24.75 +.75 basis point
  

• TED Spread 11.75 +.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -23.25 -2.0 basis points
  
• MBS  5/10 Treasury Spread  63.25 -2.0 basis points
  
• IHS Markit CMBX BBB- 6 73.0 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 57.10 -.81%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 109.0 +4.0 basis points
  

• China Iron Ore Spot 87.85 USD/Metric Tonne -.01%

• Citi US Economic Surprise Index 27.0 +11.1 points

• Citi Eurozone Economic Surprise Index -44.8 +4.7 points
  

• Citi Emerging Markets Economic Surprise Index -19.7 +.2 point

• 10-Year TIPS Spread 2.74 -3.0 basis points
• 97.5% chance of no change at Jan. 26th meeting, 78.6% chance of no change at March 16th meeting

US Covid-19:

• 185 new infections/100K people(last 7 days total) +9/100K people
• 35% of Jan. 7th, 2021 peak(highest daily avg. new infections) +2.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +42 open in Japan 
• China A50 Futures: Indicating -15 open in China

• DAX Futures: Indicating +3 open in Germany

Portfolio:

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

• Disclosed Trades:  None
  

• Market Exposure:  100% Net Long