Stocks Lower into Afternoon on US Policy-Induced Stagflation Fears, Russia Sovereign Default Worries, Fed "Behind the Curve" Concerns, Tech/Alt Energy Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line:  Substantially Lower
  

• Sector Performance:  Most Sectors Declining
  

• Volume:  Around Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 24.2 +15.1%
• Bloomberg Global Risk On/Risk Off Index 4,263.0 -114.0 points

• Euro/Yen Carry Return Index 138.87 +.14%

• Emerging Markets Currency Volatility(VXY) 11.1 +1.4%

• CBOE S&P 500 Implied Correlation Index 39.6 +6.9% 

• ISE Sentiment Index 86.0 -9.0 points
  

• Total Put/Call 1.0 +7.5%

• NYSE Arms .86 -5.5%

Credit Investor Angst:

• North American Investment Grade CDS Index 67.80 +2.9%
  

• US Energy High-Yield OAS 345.04 +3.1%

• European Financial Sector CDS Index 86.25 +2.5%

• Italian/German 10Y Yld Spread 165.0 unch.
  

• Asia Ex-Japan Investment Grade CDS Index 102.0 +3.3%
  

• Emerging Market CDS Index 234.02 +2.6%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 29.7 -.08%
• Russia Sovereign Debt Credit Default Swap 13,104.5 +197.0%
  

• 2-Year Swap Spread 22.5 +.75 basis point
  

• TED Spread 29.5 -3.5 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -22.25 -.75 basis point
  
• MBS  5/10 Treasury Spread  113.0 unch.
  
• iShares CMBS ETF 49.27 -.16%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 53.30 -.33%
• 3-Month T-Bill Yield .67% +3.0 basis points
  

• Yield Curve 10.5 +5.75 basis points
  

• China Iron Ore Spot 161.10 USD/Metric Tonne -.1%

• Citi US Economic Surprise Index 50.4 unch.

• Citi Eurozone Economic Surprise Index 32.5 -3.5 points
  

• Citi Emerging Markets Economic Surprise Index 32.5 -.3 point

• 10-Year TIPS Spread 2.83 -2.0 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:

• 64 new infections/100K people(last 7 days total). 4.0%(unch.) of 1/14 peak +1/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -93.4%(unch.) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -215 open in Japan 
• China A50 Futures: Indicating -144 open in China

• DAX Futures: Indicating +17 open in Germany

Portfolio:

• Slightly Higher: On gains in my index hedges and emerging market shorts
  

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

• Market Exposure:  Moved to 50% Net Long