Stocks Surging into Afternoon on Omicron Overreaction Reversals, Diminished US Virus Lockdown Fears, Technical Buying, Transport/Homebuilding Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 28.2 -9.3%
• Bloomberg Global Risk On/Risk Off Index 1,894.0 +160.0 points

• Euro/Yen Carry Return Index 131.75 +.13%

• Emerging Markets Currency Volatility(VXY) 11.2 +.8%

• CBOE S&P 500 Implied Correlation Index 37.7 -9.2% 

• ISE Sentiment Index 122.0  +19.0 points
  

• Total Put/Call 1.08 +10.2%

• NYSE Arms .64 -63.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 58.10 -.62%
  

• US Energy High-Yield OAS 432.03 -.17%

• European Financial Sector CDS Index 66.27 +1.34%

• Italian/German 10Y Yld Spread 132.0 -3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 94.4 -.63%
  

• Emerging Market CDS Index 208.21 -2.2%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 32.86 -.08%

• 2-Year Swap Spread 23.0 -.75 basis point
  

• TED Spread 12.75 +.75 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -30.75 -1.5 basis points
  
• MBS  5/10 Treasury Spread  72.0 +1.5 basis points
  
• IHS Markit CMBX BBB- 6 72.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 53.48 -.59%
• 3-Month T-Bill Yield .05% unch.
  

• Yield Curve 85.25 -3.25 basis points
  

• China Iron Ore Spot 103.25 USD/Metric Tonne +2.1%

• Citi US Economic Surprise Index 18.5 -.1 point

• Citi Eurozone Economic Surprise Index 7.9 -.9 point
  

• Citi Emerging Markets Economic Surprise Index -10.4 -5.4 points

• 10-Year TIPS Spread 2.47 +2.0 basis points
• 95.1%(-.1 percentage point) chance of no change at Jan. 26th meeting, 69.6%(-4.2 percentage points) chance of no change at March 16th meeting

US Covid-19:

• 177 new infections/100K people(last 7 days total) +8/100K people
• 33% of Jan. 7th, 2021 peak(highest daily avg. new infections) +1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +127 open in Japan 
• China A50 Futures: Indicating -41 open in China

• DAX Futures: Indicating +39 open in Germany

Portfolio:

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

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

• Market Exposure:  Moved to 75% Net Long