Stocks Finish at Session Highs on Russia/Ukraine Ceasefire Hopes, Stable Long-Term Rates, Short-Covering, Tech/Medical Sector Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line:  Slightly Lower
  

• Sector Performance:  Mixed
  

• Volume:  Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 21.0 +.8%
• Bloomberg Global Risk On/Risk Off Index 4,285.0 -38.0 points

• Euro/Yen Carry Return Index 139.73 +1.1%

• Emerging Markets Currency Volatility(VXY) 12.4 +2.6%

• CBOE S&P 500 Implied Correlation Index 36.5 -.4% 

• ISE Sentiment Index 90.0 -6.0 points
  

• Total Put/Call .96 +11.6%

• NYSE Arms 1.17 +82.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 71.11 -1.06%
  

• US Energy High-Yield OAS 363.28 -.28%

• European Financial Sector CDS Index 87.75 -1.5%

• Italian/German 10Y Yld Spread 153.0 +3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 107.64 -.16%
  

• Emerging Market CDS Index 233.42 -2.0%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 29.46 +.88% 
• Ukraine Sovereign Debt Credit Default Swap 3,048.72 -7.1%
  

• 2-Year Swap Spread 26.25 -.5 basis point
  

• TED Spread 46.25 +.5 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -26.75 -1.25 basis points
  
• MBS  5/10 Treasury Spread  119.0 +4.0 basis points
  
• iShares CMBS ETF 49.53 +.24%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 52.71 +.53%
• 3-Month T-Bill Yield .53% unch.
  

• Yield Curve 11.5 -8.0 basis points
  

• China Iron Ore Spot 154.3 USD/Metric Tonne +.2%

• Citi US Economic Surprise Index 56.9 +.5 point

• Citi Eurozone Economic Surprise Index 35.3 -1.1 points
  

• Citi Emerging Markets Economic Surprise Index 41.0 -4.3 points

• 10-Year TIPS Spread 2.96 -2.0 basis points
  
• 0.0%(unch.) chance of no change at June 15th FOMC meeting, 0.0%(unch.) chance of no change at July 27th meeting

US Covid-19:

• 63 new infections/100K people(last 7 days total). 4.0%(unch.) of 1/14 peak -1/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -92.9%(-1.4 percentage points) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +111 open in Japan 
• China A50 Futures: Indicating +17 open in China

• DAX Futures: Indicating +54 open in Germany

Portfolio:

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

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

• Market Exposure:  Moved to 75% Net Long