Stocks Falling Substantially into Afternoon on US Policy-Induced Stagflation Fears, Fed "Behind the Curve" Worries, China Bubble-Bursting Concerns, Tech/Energy 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) 23.6 +11.4%
• Bloomberg Global Risk On/Risk Off Index 4,350.0 -122.0 points

• Euro/Yen Carry Return Index 140.66 +1.1%

• Emerging Markets Currency Volatility(VXY) 11.1 unch.

• CBOE S&P 500 Implied Correlation Index 39.8 +10.0% 

• ISE Sentiment Index 77.0 -20.0 points
  

• Total Put/Call .99 +1.0%

• NYSE Arms .64 +10.3%

Credit Investor Angst:

• North American Investment Grade CDS Index 72.53 +3.3%
  

• US Energy High-Yield OAS 354.93 +1.2%

• European Financial Sector CDS Index 88.40 +.45%

• Italian/German 10Y Yld Spread 165.0 -4.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 106.38 +3.4%
  

• Emerging Market CDS Index 248.59 +3.2%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 29.4 -.79%
• Russia Sovereign Debt Credit Default Swap 10,262.20 -10.6%
  

• 2-Year Swap Spread 25.25 +.25 basis point
  

• TED Spread 33.0 +1.5 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -22.75 -.25 basis point
  
• MBS  5/10 Treasury Spread  121.0 +7.0 basis points
  
• iShares CMBS ETF 48.99 -.24%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 53.29 -.21%
• 3-Month T-Bill Yield .69% unch.
  

• Yield Curve 28.0 +7.5 basis points
  

• China Iron Ore Spot 150.90 USD/Metric Tonne -.3%

• Citi US Economic Surprise Index 57.0 +.1 point

• Citi Eurozone Economic Surprise Index 29.9 -1.1 points
  

• Citi Emerging Markets Economic Surprise Index 31.0 +2.4 points

• 10-Year TIPS Spread 2.92 +3.0 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:

• 70 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 -93.8%(-.3 percentage point) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +59 open in Japan 
• China A50 Futures: Indicating -2 open in China

• DAX Futures: Indicating -38 open in Germany

Portfolio:

• Slightly Lower: On losses in my tech/medical sector longs
  

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

• Market Exposure:  Moved to 25% Net Long