Stocks Falling Substantially into Final Hour on US Policy-Induced Stagflation Fears, Russia Nuclear War Rhetoric/Sovereign Default Worries, US Dollar Strength, Alt Energy/Consumer Discretionary Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance:  Almost Every Sector Declining
  

• Volume:  Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 31.6 +16.9%
• Bloomberg Global Risk On/Risk Off Index 3,698.0 -418.0 points

• Euro/Yen Carry Return Index 139.59 -1.1%

• Emerging Markets Currency Volatility(VXY) 11.5 +.4%

• CBOE S&P 500 Implied Correlation Index 47.4 +6.5% 

• ISE Sentiment Index 101.0 +1.0 point
  

• Total Put/Call 1.0 -13.0%

• NYSE Arms 1.26 +40.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 80.06 +3.8%
  

• US Energy High-Yield OAS 378.06 +1.9%

• European Financial Sector CDS Index 97.87 +3.9%

• Italian/German 10Y Yld Spread 174.0 unch.
  

• Asia Ex-Japan Investment Grade CDS Index 119.45 -.5%
  

• Emerging Market CDS Index 274.0 +2.9%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 29.4 +.03%
• Russia Sovereign Debt Credit Default Swap 14,952.20 +19.1%
  

• 2-Year Swap Spread 30.25 +1.25 basis points
  

• TED Spread 38.0 -7.0 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -23.25 -.5 basis point
  
• MBS  5/10 Treasury Spread  123.0 unch.
  
• iShares CMBS ETF 49.07 +.35%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 52.45 -.52%
• 3-Month T-Bill Yield .82% unch.
  

• Yield Curve 23.0(2s/10s) +2.5 basis points
  

• China Iron Ore Spot 139.75 USD/Metric Tonne +.39%

• Citi US Economic Surprise Index 62.50 unch.

• Citi Eurozone Economic Surprise Index 57.2 +.2 point
  

• Citi Emerging Markets Economic Surprise Index 42.1 +2.6 points

• 10-Year TIPS Spread 2.87 -4.0 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:

• 105 new infections/100K people(last 7 days total). 6.0%(unch.) of 1/14 peak +6/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -92.4%(unch.) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -430 open in Japan 
• China A50 Futures: Indicating -57 open in China

• DAX Futures: Indicating +23 open in Germany

Portfolio:

• Lower: On losses in my tech/medical/consumer discretionary/industrial sector longs
  

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

• Market Exposure:  Moved to 25% Net Long