Stocks Slightly Higher into Final Hour on More US Deficit Spending, Earnings Optimism, Short-Covering, Alt Energy/Commodity Sector Strength

 

 Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Above Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 17.3 +5.2%
• Bloomberg Global Risk On/Risk Off Index 3,056.0 -29.0 points

• Euro/Yen Carry Return Index 135.30 +.04%

• Emerging Markets Currency Volatility(VXY) 8.88 -.22%

• S&P 500 Implied Correlation 49.9 -.3%

• ISE Sentiment Index 161.0  +34.0 points
  

• Total Put/Call .63 -19.2%

• NYSE Arms .70 -.32%

Credit Investor Angst:

• North American Investment Grade CDS Index 49.57 -.02%
  

• US Energy High-Yield OAS 378.67 +6.6%

• European Financial Sector CDS Index 54.53 -.65%

• Italian/German 10Y Yld Spread 114.0 -2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 91.19 +6.4%
  

• Emerging Market CDS Index 174.36 -1.06%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 32.6 -1.2%

• 2-Year Swap Spread 19.5 -.5 basis point
  

• TED Spread 10.5 +.5 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -19.5 +.25 basis point
  
• MBS  5/10 Treasury Spread  62.75 -1.5 basis points
  
• IHS Markit CMBX BBB- 6 72.75 +.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 58.22 +.27%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 105.0 -7.0 basis points
  

• China Iron Ore Spot 93.80 USD/Metric Tonne +1.1%

• Citi US Economic Surprise Index 3.8 +5.6 points

• Citi Eurozone Economic Surprise Index -56.6 +4.7 points
  

• Citi Emerging Markets Economic Surprise Index -21.9 +3.3 points

• 10-Year TIPS Spread 2.61 +4.0 basis points
• 97.5% chance of no change at Jan. 26th meeting, 88.1% chance of no change at March 16th meeting

US Covid-19:

• 155 new infections/100K people(last 7 days total) +3/100K people
• 29% of Jan. 7th, 2021 peak(highest daily avg. new infections) unch.
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +163 open in Japan 
• China A50 Futures: Indicating +48 open in China

• DAX Futures: Indicating -13 open in Germany

Portfolio:

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

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

• Market Exposure:  Moved to 100% Net Long