Stocks Higher into Final Hour on China Stock Support Measures, Less European/Emerging Markets Debt Angst, Short-Covering, Tech/Gambling Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line:  Substantially Higher
  

• Sector Performance:  Almost Every Sector Rising
  

• Volume:  Heavy

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 28.0 -6.1%
• Bloomberg Global Risk On/Risk Off Index 3,081.0 +383.0 points

• Euro/Yen Carry Return Index 134.11 +.57%

• Emerging Markets Currency Volatility(VXY) 13.1 -2.0%

• CBOE S&P 500 Implied Correlation Index 47.4 -3.4% 

• ISE Sentiment Index 97.0 -9.0 points
  

• Total Put/Call .97 -9.4%

• NYSE Arms .79 +17.9%

Credit Investor Angst:

• North American Investment Grade CDS Index 70.25 -4.1%
  

• US Energy High-Yield OAS 402.30 -5.2%

• European Financial Sector CDS Index 82.72 -7.9%

• Italian/German 10Y Yld Spread 150.0 -7.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 117.17 -4.9%
  

• Emerging Market CDS Index 291.65 -9.6%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 28.16 -.25% 
• Ukraine Sovereign Debt Credit Default Swap 3,743.10 -31.7%
  

• 2-Year Swap Spread 24.0 +1.25 basis points
  

• TED Spread 43.5 +3.75 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -26.75 -1.75 basis points
  
• MBS  5/10 Treasury Spread  115.0 +1.0 basis point
  
• iShares CMBS ETF 50.09 -.71%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 52.13 +.97%
• 3-Month T-Bill Yield .43% unch.
  

• Yield Curve 30.25 +2.25 basis points
  

• China Iron Ore Spot 150.6 USD/Metric Tonne +4.5%

• Citi US Economic Surprise Index 40.9 -8.2 points

• Citi Eurozone Economic Surprise Index 40.9 +.1 point
  

• Citi Emerging Markets Economic Surprise Index 55.4 +.7 point

• 10-Year TIPS Spread 2.80 -7.0 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:

• 69 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 -89.0%(-.3 percentage point) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +58 open in Japan 
• China A50 Futures: Indicating +431 open in China

• DAX Futures: Indicating -121 open in Germany

Portfolio:

• Slightly Lower: On losses in my commodity sector longs, index hedges and emerging market shorts
  

• Disclosed Trades:  None
  

• Market Exposure:  50% Net Long