Stocks Lower into Final Hour on US Policy-Induced Stagflation Fears, Global Virus Lockdown/Mandate Worries, Meme Stock/Crypto Bubbles Bursting, Energy/Consumer Discretionary Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line:  Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Around Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 20.3 +8.5%
• Bloomberg Global Risk On/Risk Off Index 2,573.0 -170.0 points

• Euro/Yen Carry Return Index 132.0 -.19%

• Emerging Markets Currency Volatility(VXY) 10.8 +.4%

• CBOE S&P 500 Implied Correlation Index 30.9 +7.7% 

• ISE Sentiment Index 103.0  -8.0 points
  

• Total Put/Call .93 -13.9%

• NYSE Arms 1.40 +82.9%

Credit Investor Angst:

• North American Investment Grade CDS Index 53.44 -.31%
  

• US Energy High-Yield OAS 414.23 +.21%

• European Financial Sector CDS Index 59.97 -.69%

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

• Asia Ex-Japan Investment Grade CDS Index 83.45 -1.37%
  

• Emerging Market CDS Index 191.89 +.29%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 33.20 -.34%

• 2-Year Swap Spread 19.5 -1.25 basis points
  

• TED Spread 15.0 +.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -14.75 -.75 basis point
  
• MBS  5/10 Treasury Spread  71.75 +.25 basis point
  
• IHS Markit CMBX BBB- 6 72.25 -.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 53.43 -.16%
• 3-Month T-Bill Yield .05% unch.
  

• Yield Curve 82.25 +2.75 basis points
  

• China Iron Ore Spot 114.7 USD/Metric Tonne +2.7%

• Citi US Economic Surprise Index 32.5 -2.5 points

• Citi Eurozone Economic Surprise Index 8.6 +1.6 points
  

• Citi Emerging Markets Economic Surprise Index -10.4 +2.7 points

• 10-Year TIPS Spread 2.44 -4.0 basis points
• 89.8%(-2.1 percentage points) chance of no change at Jan. 26th meeting, 65.4%(+2.0 percentage points) chance of no change at March 16th meeting

US Covid-19:

• 258 new infections/100K people(last 7 days total) +7/100K people
• 49% of Jan. 7th, 2021 peak(highest daily avg. new infections) +2.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -60 open in Japan 
• China A50 Futures: Indicating -52 open in China

• DAX Futures: Indicating +15 open in Germany

Portfolio:

• Lower: On losses in my tech/consumer discretionary/industrial/transport sector longs
  

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

• Market Exposure:  Moved to 75% Net Long