Stocks Rising into Afternoon on Less European/Emerging Markets Debt Angst, US Economic Data, Short-Covering, Commodity/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line:  Substantially Higher
  

• Sector Performance:  Most Sectors Rising
  

• Volume:  Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 25.7 -3.5%
• Bloomberg Global Risk On/Risk Off Index 3,422.0 +316.0 points

• Euro/Yen Carry Return Index 135.77 +.7%

• Emerging Markets Currency Volatility(VXY) 12.9 unch.

• CBOE S&P 500 Implied Correlation Index 43.6 -5.2% 

• ISE Sentiment Index 92.0 -16.0 points
  

• Total Put/Call .95 -5.0%

• NYSE Arms 1.66 +115.5%

Credit Investor Angst:

• North American Investment Grade CDS Index 65.68 -3.9%
  

• US Energy High-Yield OAS 400.94  -1.3%

• European Financial Sector CDS Index 78.97 -4.5%

• Italian/German 10Y Yld Spread 152.0 +2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 104.50 -11.3%
  

• Emerging Market CDS Index 271.32 -2.8%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 28.44 +.6% 
• Ukraine Sovereign Debt Credit Default Swap 3,743.10 -31.7%
  

• 2-Year Swap Spread 24.5 +.5 basis point
  

• TED Spread 53.25 +9.75 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -23.5 +3.25 basis points
  
• MBS  5/10 Treasury Spread  115.0 +1.0 basis point
  
• iShares CMBS ETF 50.30 -.02%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 52.22 -.29%
• 3-Month T-Bill Yield .37% -6.0 basis points
  

• Yield Curve 23.0 -7.25 basis points
  

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

• Citi US Economic Surprise Index 47.8 +6.9 points

• Citi Eurozone Economic Surprise Index 40.6 -.3 point
  

• Citi Emerging Markets Economic Surprise Index 51.3 -4.1 points

• 10-Year TIPS Spread 2.88 +8.0 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:

• 75 new infections/100K people(last 7 days total). 4.0%(unch.) of 1/14 peak +6/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -89.0%(unch.) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -112 open in Japan 
• China A50 Futures: Indicating -64 open in China

• DAX Futures: Indicating +41 open in Germany

Portfolio:

• Higher: On gains in my commodity/tech/medical/industrial sector longs and emerging market shorts
  

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

• Market Exposure:  Moved to 100% Net Long