Stocks Substantially Higher into Final Hour on Diminished US Virus Lockdown Fears, Technical Buying, Seasonality, Tech/Energy Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Above Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 22.1 -22.7%
• Bloomberg Global Risk On/Risk Off Index 2,561.0 +550.0 points

• Euro/Yen Carry Return Index 132.18 -.16%

• Emerging Markets Currency Volatility(VXY) 10.9 -.18%

• S&P 500 Implied Correlation 49.1 n/a

• ISE Sentiment Index 115.0  +2.0 points
  

• Total Put/Call .88 -4.4%

• NYSE Arms 1.21 -14.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 57.68 -2.3%
  

• US Energy High-Yield OAS 424.58 -1.3%

• European Financial Sector CDS Index 65.54 -3.0%

• Italian/German 10Y Yld Spread 129.0 -2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 92.5 +.18%
  

• Emerging Market CDS Index 209.78 -4.5%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 32.9 +.03%

• 2-Year Swap Spread 23.5 +1.0 basis point
  

• TED Spread 13.75 +.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -32.5 -.5 basis point
  
• MBS  5/10 Treasury Spread  67.5 -1.5 basis points
  
• IHS Markit CMBX BBB- 6 73.0 +.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 53.89 -.77%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 99.0 +1.0 basis point
  

• China Iron Ore Spot 103.40 USD/Metric Tonne +3.2%

• Citi US Economic Surprise Index 25.9 -.5 point

• Citi Eurozone Economic Surprise Index -11.9 +2.7 points
  

• Citi Emerging Markets Economic Surprise Index -13.7 +2.3 points

• 10-Year TIPS Spread 2.56 +1.0 basis point
• 97.5% chance of no change at Jan. 26th meeting, 82.4% chance of no change at March 16th meeting

US Covid-19:

• 157 new infections/100K people(last 7 days total) -31/100K people
• 30% of Jan. 7th, 2021 peak(highest daily avg. new infections) -5.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +151 open in Japan 
• China A50 Futures: Indicating -83 open in China

• DAX Futures: Indicating +54 open in Germany

Portfolio:

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

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

• Market Exposure:  Moved to 75% Net Long