Stocks Falling into Final Hour on US Policy-Induced Stagflation Fears, Fed "Behind the Curve" Worries, Earnings Jitters, Tech/Alt Energy Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line:  Higher
  

• Sector Performance:  Most Sectors Declining
  

• Volume:  Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 21.5 -1.5%
• Bloomberg Global Risk On/Risk Off Index 4,682.0 +170.0 points

• Euro/Yen Carry Return Index 140.50 -.33%

• Emerging Markets Currency Volatility(VXY) 10.9 -.27%

• CBOE S&P 500 Implied Correlation Index 39.6 +1.1% 

• ISE Sentiment Index 105.0 -16.0 points
  

• Total Put/Call .85 -5.6%

• NYSE Arms .96 +68.4%

Credit Investor Angst:

• North American Investment Grade CDS Index 72.57 +1.2%
  

• US Energy High-Yield OAS 358.81 -2.5%

• European Financial Sector CDS Index 87.82 -.75%

• Italian/German 10Y Yld Spread 164.0 +3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 107.87 -1.75%
  

• Emerging Market CDS Index 258.99 +3.5%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 29.46 +.1%
• Russia Sovereign Debt Credit Default Swap 10,755.51 +.98%
  

• 2-Year Swap Spread 25.75 -.75 basis point
  

• TED Spread 28.5 +.5 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -22.25 -.75 basis point
  
• MBS  5/10 Treasury Spread  117.0 +2.0 basis points
  
• iShares CMBS ETF 48.99 -.69%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 53.39 -.22%
• 3-Month T-Bill Yield .75% +1.0 basis point
  

• Yield Curve 37.0 +3.25 basis points
  

• China Iron Ore Spot 156.7 USD/Metric Tonne +2.7%

• Citi US Economic Surprise Index 55.60 +5.0 points

• Citi Eurozone Economic Surprise Index 30.7 -1.0 point
  

• Citi Emerging Markets Economic Surprise Index 31.8 -1.4 points

• 10-Year TIPS Spread 2.91 +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:

• 74 new infections/100K people(last 7 days total). 4.0%(unch.) of 1/14 peak +2/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -93.3%(-.1 percentage point) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -122 open in Japan 
• China A50 Futures: Indicating -47 open in China

• DAX Futures: Indicating -17 open in Germany

Portfolio:

• Slightly Higher: On gains in my commodity/industrial sector longs, index hedges and emerging market shorts
  

• Disclosed Trades:  Added to my (IWM)/(QQQ) hedges
  

• Market Exposure:  Moved to 25% Net Long