Stocks Surging into Final Hour on More Dovish Fed Commentary, Stable Long-Term Rates, Diminished US Virus Mandate/Lockdown Fears, Tech/Energy Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line:  Substantially Higher
  

• Sector Performance:  Most Sectors Rising
  

• Volume:  Around Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 18.7 -3.9%
• Bloomberg Global Risk On/Risk Off Index 3,575.0 +85.0 points

• Euro/Yen Carry Return Index 135.14 +.51%

• Emerging Markets Currency Volatility(VXY) 10.1 -1.7%

• CBOE S&P 500 Implied Correlation Index 30.0 +1.7% 

• ISE Sentiment Index 146.0  +53.0 points
  

• Total Put/Call .72 -28.7%

• NYSE Arms .72 -8.9%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.73 -1.8%
  

• US Energy High-Yield OAS 385.89 -1.5%

• European Financial Sector CDS Index 58.69 -1.6%

• Italian/German 10Y Yld Spread 133.0 +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 79.83 -.74%
  

• Emerging Market CDS Index 198.35 -.28%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 32.2 -1.08%

• 2-Year Swap Spread 20.75 +1.25 basis points
  

• TED Spread 12.75 -1.75 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap 2.0 unch.
  
• MBS  5/10 Treasury Spread  77.75 +.25 basis point
  
• IHS Markit CMBX BBB- 6 72.25 +.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 53.94 +.54%
• 3-Month T-Bill Yield .11% +2.0 basis points
  

• Yield Curve 85.5 +.75 basis point
  

• China Iron Ore Spot 129.45 USD/Metric Tonne +1.7%

• Citi US Economic Surprise Index 6.0 +.9 point

• Citi Eurozone Economic Surprise Index 39.5 -.9 point
  

• Citi Emerging Markets Economic Surprise Index 3.1 -.2 points

• 10-Year TIPS Spread 2.57 +6.0 basis points
  
• 21.2%(-2.7 percentage points) chance of no change at March 16th FOMC meeting, 12.5%(-1.9 percentage points) chance of no change at May 4th meeting

US Covid-19:

• 1,618 new infections/100K people(last 7 days total) at new record high +117/100K people from prior report
  
• New Covid-19 patient hospital admissions per 100K population at new record high +32.5%(-.2 percentage point) from prior 7-day avg. of 12/26/21 - 1/1/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +268 open in Japan 
• China A50 Futures: Indicating +45 open in China

• DAX Futures: Indicating +33 open in Germany

Portfolio:

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

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

• Market Exposure:  Moved to 100% Net Long