Stocks Reversing Lower into Afternoon on Surging Inflation Expectations Despite Hawkish Fed Commentary, US Policy-Induced Stagflation Fears, Earnings Outlook Worries, Alt Energy/Tech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance:  Almost Every Sector Declining
  

• Volume:  Around Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 21.9 +7.7%
• Bloomberg Global Risk On/Risk Off Index 4,787.0 +10.0 points

• Euro/Yen Carry Return Index 143.14 +.26%

• Emerging Markets Currency Volatility(VXY) 11.0 +.2%

• CBOE S&P 500 Implied Correlation Index 39.2 +9.4% 

• ISE Sentiment Index 90.0 -5.0 points
  

• Total Put/Call 95.0 +3.3%

• NYSE Arms 1.22 +8.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 75.25 +3.0%
  

• US Energy High-Yield OAS 345.90 -2.4%

• European Financial Sector CDS Index 88.37 +1.3%

• Italian/German 10Y Yld Spread 166.0 +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 110.25 -1.8%
  

• Emerging Market CDS Index 257.60 +1.3%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 29.2 -.68%
• Russia Sovereign Debt Credit Default Swap 11,331.20 +2.6%
  

• 2-Year Swap Spread 28.25 +.75 basis point
  

• TED Spread 27.75 +4.25 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -18.75 +1.5 basis points
  
• MBS  5/10 Treasury Spread  118.0 +1.0 basis point
  
• iShares CMBS ETF 48.60 -.37%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 53.22 -.20%
• 3-Month T-Bill Yield .82% -1.0 basis point
  

• Yield Curve 22.5 -2.25 basis points
  

• China Iron Ore Spot 153.75 USD/Metric Tonne +.1%

• Citi US Economic Surprise Index 66.90 -2.5 points

• Citi Eurozone Economic Surprise Index 22.5 -1.3 points
  

• Citi Emerging Markets Economic Surprise Index 43.1 -1.0 point

• 10-Year TIPS Spread 3.03 +9.0 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:

• 88 new infections/100K people(last 7 days total). 5.0%(unch.) of 1/14 peak +4/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -92.8%(+.1 percentage point) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -273 open in Japan 
• China A50 Futures: Indicating -104 open in China

• DAX Futures: Indicating -107 open in Germany

Portfolio:

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

• Disclosed Trades:  Added to my (IWM)/(QQQ) hedges and to my emerging market shorts
  

• Market Exposure:  Moved to 25% Net Long