Morning

 Buy stocks…Again 3 reasons.

 Bloomberg article talking about how HF are making up for a lost January by buying and selling stocks at pace last seen in March “Hedge funds, which were forced to retreat furiously last week amid a retail-fueled short squeeze, have since been busy adding stocks on both the long and short side of their book. Their gross trading flow jumped on Tuesday at the fastest pace since the bear market bottom in March, according to data compiled by Goldman Sachs Group Inc.’s prime brokerage unit.”

 Also good for Risk   One step closer to a new Stimulus Deal “The Senate passed budget legislation which clears the way for President Biden’s $1.9tn stimulus plan, Vice President Harris breaking a 50-50 tie. From here it will proceed to the House of Representatives.” IFR News

 Lastly “The 7-day average of new Covid_19 cases per day is down 45% from the peak on January 11th and hospitalizations are down 31% from the peak on January 6th”-BBG.

P.S.  JNJ is asking the FDA to clear its COVID-19 vaccine for emergency use   if so 3 vaccines in the USA. Looks like a hearing on feb 26Th will decide its fate.

Markets:

  Bonds and bunds offered, US yield curve steeper, rumblings now that Bond Vol has found a bottom and Vix has found a top, Stocks higher Bonds lower. Brent a stone’s throw from $60 printed $59.75 another slight negative for long end bonds vis vi Inflation expectations creeping higher. Bond yields working the 7th Consecutive higher close.

Nat gas Up through $3 Cold artic weather here to stay for next 2 weeks per morning weather if so, we could see record storage withdrawals for the Month of February something the markets did not price in

Dollar sideways, Stocks sideways Expectations are for a strong payrolls Number any impact on markets will be short lived macro news more important than Economic data. You can look at payroll data in the sense of more or Less stimulus depending how strong or weak data is .be aware we will see yearly revisions,

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