Stocks Reversing Higher into Final Hour on Earnings Optimism, Diminished Russia Sovereign Default Fears, Technical Buying, Healthcare/Metals & Mining Sector Strength

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) 22.7 +2.5%
• Bloomberg Global Risk On/Risk Off Index 4,312.0 -58.0 points

• Euro/Yen Carry Return Index 138.82 unch.

• Emerging Markets Currency Volatility(VXY) 11.1 -.54%

• CBOE S&P 500 Implied Correlation Index 37.3 -.35% 

• ISE Sentiment Index 101.0 +1.0 point
  

• Total Put/Call .92 -1.08%

• NYSE Arms 1.37 +79.2%

Credit Investor Angst:

• North American Investment Grade CDS Index 67.91 +.86%
  

• US Energy High-Yield OAS 351.70 +1.14%

• European Financial Sector CDS Index 87.34 +.97%

• Italian/German 10Y Yld Spread 165.0 unch.
  

• Asia Ex-Japan Investment Grade CDS Index 102.39 +.63%
  

• Emerging Market CDS Index 236.54 +1.6%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 29.7 -.15%
• Russia Sovereign Debt Credit Default Swap 11,643.2 -10.3%
  

• 2-Year Swap Spread 23.0 +.5 basis point
  

• TED Spread 31.75 +2.25 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -22.25 -.75 basis point
  
• MBS  5/10 Treasury Spread  111.0 -2.0 basis points
  
• iShares CMBS ETF 49.27 -.10%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 53.39 +.06%
• 3-Month T-Bill Yield .67% unch.
  

• Yield Curve 19.75 +9.25 basis points
  

• China Iron Ore Spot 158.30 USD/Metric Tonne -1.1%

• Citi US Economic Surprise Index 56.9 +6.5 points

• Citi Eurozone Economic Surprise Index 31.5 -1.0 point
  

• Citi Emerging Markets Economic Surprise Index 28.0 -4.5 points

• 10-Year TIPS Spread 2.85 +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 -93.2%(+.2 percentage point) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +227 open in Japan 
• China A50 Futures: Indicating -58 open in China

• DAX Futures: Indicating +112 open in Germany

Portfolio:

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

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

• Market Exposure:  Moved to 50% Net Long