Stocks Substantially Higher into Final Hour on Diminished US Virus Lockdown Fears, Short-Covering, Oil Gain, Airline/Gambling Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 27.0 -11.8%
• Bloomberg Global Risk On/Risk Off Index 1,948.0 +309.0 points

• Euro/Yen Carry Return Index 132.06 +.32%

• Emerging Markets Currency Volatility(VXY) 11.49 +.44%

• CBOE S&P 500 Implied Correlation Index 35.0 -6.8% 

• ISE Sentiment Index 112.0  +4.0 points
  

• Total Put/Call .99 -14.7%

• NYSE Arms .76 -23.2%

Credit Investor Angst:

• North American Investment Grade CDS Index 56.3 -3.6%
  

• US Energy High-Yield OAS 438.02 -1.3%

• European Financial Sector CDS Index 66.0 -1.4%

• Italian/German 10Y Yld Spread 127.0 -3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 92.62 -.52%
  

• Emerging Market CDS Index 204.46 -2.7%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 32.90 +.39%

• 2-Year Swap Spread 22.5 -.25 basis point
  

• TED Spread 14.5 +.75 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -22.0 -3.25 basis points
  
• MBS  5/10 Treasury Spread  73.25 -1.75 basis points
  
• IHS Markit CMBX BBB- 6 72.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 53.31 -.24%
• 3-Month T-Bill Yield .04% unch.
  

• Yield Curve 77.5 -3.5 basis points
  

• China Iron Ore Spot 107.20 USD/Metric Tonne +3.1%

• Citi US Economic Surprise Index 32.6 -1.0 points

• Citi Eurozone Economic Surprise Index -4.9 -10.8 points
  

• Citi Emerging Markets Economic Surprise Index -12.8 -.7 point

• 10-Year TIPS Spread 2.47 +3.0 basis points
• 92.6%(-2.5 percentage points) chance of no change at Jan. 26th meeting, 67.8%(-1.8 percentage points) chance of no change at March 16th meeting

US Covid-19:

• 258 new infections/100K people(last 7 days total) +46/100K people
• 48% of Jan. 7th, 2021 peak(highest daily avg. new infections) +8.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +172 open in Japan 
• China A50 Futures: Indicating -175 open in China

• DAX Futures: Indicating +29 open in Germany

Portfolio:

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

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

• Market Exposure:  Moved to 75% Net Long