Stocks Slightly Higher into Final Hour on Diminished US Virus Lockdown Fears, Dollar Weakness, Short-Covering, Airline/Gambling 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) 20.6 -5.8%
• Bloomberg Global Risk On/Risk Off Index 2,684.0 +257.0 points

• Euro/Yen Carry Return Index 132.94 +.74%

• Emerging Markets Currency Volatility(VXY) 10.97 -.9%

• CBOE S&P 500 Implied Correlation Index 28.9 -4.2% 

• ISE Sentiment Index 193.0  +59.0 points
  

• Total Put/Call .83 -12.6%

• NYSE Arms .85 +18.1%

Credit Investor Angst:

• North American Investment Grade CDS Index 53.60 -.7%
  

• US Energy High-Yield OAS 408.12 -1.2%

• European Financial Sector CDS Index 62.41 +.51%

• Italian/German 10Y Yld Spread 134.0 +4.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 87.11 -3.4%
  

• Emerging Market CDS Index 189.90 -2.9%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 33.19 +.56%

• 2-Year Swap Spread 19.75 -1.75 basis points
  

• TED Spread 14.0 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -14.5 +7.0 basis points
  
• MBS  5/10 Treasury Spread  69.75 -1.75 basis points
  
• IHS Markit CMBX BBB- 6 72.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 53.79 +.13%
• 3-Month T-Bill Yield .06% +1.0 basis point
  

• Yield Curve 77.5 -3.5 basis points
  

• China Iron Ore Spot 111.8 USD/Metric Tonne +2.1%

• Citi US Economic Surprise Index 31.8 -.4 point

• Citi Eurozone Economic Surprise Index 3.8 +.2 point
  

• Citi Emerging Markets Economic Surprise Index -12.3 -.9 point

• 10-Year TIPS Spread 2.55 +5.0 basis points
• 94.0%(+1.4 percentage points) chance of no change at Jan. 26th meeting, 64.9%(+.7 percentage point) chance of no change at March 16th meeting

US Covid-19:

• 257 new infections/100K people(last 7 days total) +4/100K people
• 48% of Jan. 7th, 2021 peak(highest daily avg. new infections) +1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +65 open in Japan 
• China A50 Futures: Indicating +112 open in China

• DAX Futures: Indicating +17 open in Germany

Portfolio:

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

• Disclosed Trades:  None
  

• Market Exposure:  100% Net Long