Stocks Slightly Higher into Final Hour on Earnings Optimism, Dollar Weakness, Short-Covering, Commodity/Consumer Discretionary 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) 16.9 +3.8%
• Bloomberg Global Risk On/Risk Off Index 3,440.0 +117.0 points

• Euro/Yen Carry Return Index 136.3 +.3%

• Emerging Markets Currency Volatility(VXY) 9.2 +.3%

• S&P 500 Implied Correlation 51.8 +1.4%

• ISE Sentiment Index 128.0  +25.0 points
  

• Total Put/Call .74 -15.0%

• NYSE Arms .63 -61.6%

Credit Investor Angst:

• North American Investment Grade CDS Index 52.42 +.51%
  

• US Energy High-Yield OAS 358.01 +1.11%

• European Financial Sector CDS Index 58.93 +1.3%

• Italian/German 10Y Yld Spread 132.0 +4.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 81.37 +.45%
  

• Emerging Market CDS Index 187.63 +.77%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 33.16 -.74%

• 2-Year Swap Spread 20.0 +.75 basis point
  

• TED Spread 8.5 -.5 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -20.25 +1.75 basis points
  
• MBS  5/10 Treasury Spread  62.5 -2.0 basis points
  
• IHS Markit CMBX BBB- 6 72.25 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 58.07 -.07%
• 3-Month T-Bill Yield .04% -1.0 basis point
  

• Yield Curve 108.0 -1.0 basis point
  

• China Iron Ore Spot 98.0 USD/Metric Tonne -3.3%

• Citi US Economic Surprise Index -20.5 -4.4 points

• Citi Eurozone Economic Surprise Index -51.5 +1.3 points
  

• Citi Emerging Markets Economic Surprise Index -22.4 -3.5 points

• 10-Year TIPS Spread 2.53 -3.0 basis points
• 100.0% chance of no change at Dec. 15th meeting, 95.1% chance of no change at Jan. 26th meeting

US Covid-19:

• 153 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 -137 open in Japan 
• China A50 Futures: Indicating +37 open in China

• DAX Futures: Indicating -9 open in Germany

Portfolio:

• Slightly Lower: On losses in my tech sector longs and emerging market shorts
  

• Disclosed Trades:  Added to my (IWM)/(QQQ) hedges
  

• Market Exposure:  Moved to 75% Net Long