Stocks Rising into Final Hour on Dovish FOMC Commentary, Earnings Optimism, Short-Covering, Consumer Discretionary/Healthcare Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Above Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 15.5 -3.3%
• Bloomberg Global Risk On/Risk Off Index 3,432.0 +100.0 points

• Euro/Yen Carry Return Index 136.39 +.25%

• Emerging Markets Currency Volatility(VXY) 9.11 -.65%

• S&P 500 Implied Correlation 49.8 -4.2%

• ISE Sentiment Index 136.0  +2.0 points
  

• Total Put/Call .62 -11.4%

• NYSE Arms .82 -40.2%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.18 -1.7%
  

• US Energy High-Yield OAS 360.11 +.8%

• European Financial Sector CDS Index 57.49 -.73%

• Italian/German 10Y Yld Spread 122.0 -2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 82.07 -.14%
  

• Emerging Market CDS Index 182.47 -2.0%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 33.22 +1.1%

• 2-Year Swap Spread 20.75 +.25 basis point
  

• TED Spread 9.5 +.75 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -18.75 unch.
  
• MBS  5/10 Treasury Spread  62.0 -2.5 basis points
  
• IHS Markit CMBX BBB- 6 72.25 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 57.99 +.07%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 106.0 -2.0 basis points
  

• China Iron Ore Spot 95.50 USD/Metric Tonne -1.7%

• Citi US Economic Surprise Index -4.5 +15.2 points

• Citi Eurozone Economic Surprise Index -49.6 +2.1 points
  

• Citi Emerging Markets Economic Surprise Index -22.2 -.1 point

• 10-Year TIPS Spread 2.55 +4.0 basis points
• 95.1% chance of no change at Jan. 26th meeting, 84.1% chance of no change at March 16th meeting

US Covid-19:

• 155 new infections/100K people(last 7 days total) +0/100K people
• 29% of Jan. 7th, 2021 peak(highest daily avg. new infections) unch.
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +225 open in Japan 
• China A50 Futures: Indicating +32 open in China

• DAX Futures: Indicating +41 open in Germany

Portfolio:

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

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

• Market Exposure:  Moved to 100% Net Long