Stocks Falling Substantially into Final Hour on US Policy-Induced Stagflation Fears, Fed "Behind the Curve" Worries, European/Emerging Markets/US High-Yield Debt Angst, Consumer Discretionary/Tech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance:  Most Sectors Declining
  

• Volume:  Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 30.9 +2.9%
• Bloomberg Global Risk On/Risk Off Index 4,173.0 -5.0 points

• Euro/Yen Carry Return Index 140.72 -.35%

• Emerging Markets Currency Volatility(VXY) 12.1 -.74%

• CBOE S&P 500 Implied Correlation Index 51.4 +.2% 

• ISE Sentiment Index 91.0 -1.0 point
  

• Total Put/Call 1.20 +6.2%

• NYSE Arms .91 +33.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 83.0 +2.7%
  

• US Energy High-Yield OAS 375.02 -.45%

• European Financial Sector CDS Index 101.92 +2.2%

• Italian/German 10Y Yld Spread 184.0 +3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 118.67 -1.62%
  

• Emerging Market CDS Index 284.88 +5.2%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 29.30 +.46%
• Russia Sovereign Debt Credit Default Swap 3,707.59 -83.6%
  

• 2-Year Swap Spread 33.5 +1.5 basis points
  

• TED Spread 46.0 +3.25 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -21.75 +1.0 basis point
  
• MBS  5/10 Treasury Spread  123.0 +2.0 basis points
  
• iShares CMBS ETF 48.70 -.30%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 52.53 +.43%
• 3-Month T-Bill Yield .83% +2.0 basis points
  

• Yield Curve 18.25(2s/10s) -2.25 basis points
  

• China Iron Ore Spot 145.70 USD/Metric Tonne +.73%

• Citi US Economic Surprise Index 39.4 +2.3 points

• Citi Eurozone Economic Surprise Index 53.1 -3.6 points
  

• Citi Emerging Markets Economic Surprise Index 48.3 +2.0 points

• 10-Year TIPS Spread 2.98 unch.
  
• 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:

• 115 new infections/100K people(last 7 days total). 7.0%(unch.) of 1/14 peak +2/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -91.0%(+.2 percentage point) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +108 open in Japan 
• China A50 Futures: Indicating -139 open in China

• DAX Futures: Indicating -61 open in Germany

Portfolio:

• Lower: On losses in my tech/medical/consumer discretionary/industrial/commodity sector longs and emerging market shorts
  

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

• Market Exposure:  Moved to 25% Net Long