Stocks Slightly Higher into Final Hour on Diminished US Virus Mandate/Lockdown Fears, Year-End Window Dressing, Short-Covering, Consumer Discretionary/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line:  Substantially Higher
  

• Sector Performance:  Most Sectors Rising
  

• Volume:  Light

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 16.7 -1.2%
• Bloomberg Global Risk On/Risk Off Index 3,248.0 +33.0 points

• Euro/Yen Carry Return Index 134.26 -.16%

• Emerging Markets Currency Volatility(VXY) 11.3 +1.2%

• CBOE S&P 500 Implied Correlation Index 25.9 +1.8% 

• ISE Sentiment Index 86.0  -59.0 points
  

• Total Put/Call .85 -7.6%

• NYSE Arms .65 -56.7%

Credit Investor Angst:

• North American Investment Grade CDS Index 49.60 +.25%
  

• US Energy High-Yield OAS 386.34 +.63%

• European Financial Sector CDS Index 55.05 -1.3%

• Italian/German 10Y Yld Spread 135.0 +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 77.80 -1.3%
  

• Emerging Market CDS Index 188.3 -.8%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 32.88 +.09%

• 2-Year Swap Spread 19.25 -.25 basis point
  

• TED Spread 18.0 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap 1.25 +6.25 basis points
  
• MBS  5/10 Treasury Spread  72.75 +4.5 basis points
  
• IHS Markit CMBX BBB- 6 72.25 +.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 54.06 -.73%
• 3-Month T-Bill Yield .03% -1.0 basis point
  

• Yield Curve 80.5 +6.75 basis points
  

• China Iron Ore Spot 121.20 USD/Metric Tonne +2.3%

• Citi US Economic Surprise Index 20.0 unch.

• Citi Eurozone Economic Surprise Index 28.9 +.7 point
  

• Citi Emerging Markets Economic Surprise Index -2.4 +1.6 points

• 10-Year TIPS Spread 2.60 +5.0 basis points
• 43.5%(+3.7 percentage points) chance of no change at March 16th FOMC meeting, 28.1%(+2.4 percentage points) chance of no change at May 4th meeting

US Covid-19:

• 620 new infections/100K people(last 7 days total) +70/100K people
• New Covid-19 patient hospital admissions per 100K -38.3% from peak 7-day avg. of 1/3/21-1/9/21
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +161 open in Japan 
• China A50 Futures: Indicating +101 open in China

• DAX Futures: Indicating -15 open in Germany

Portfolio:

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

• Disclosed Trades:  None
  

• Market Exposure:  75% Net Long