Stocks Reversing Lower into Final Hour on US Policy-Induced Stagflation Fears, Fed "Behind the Curve" Worries, Technical Selling, Pharma/Financial Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line:  Higher
  

• Sector Performance:  Most Sectors Rising
  

• Volume:  Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 23.0 -5.5%
• Bloomberg Global Risk On/Risk Off Index 4,406.0 +142.0 points

• Euro/Yen Carry Return Index 139.66 -.59%

• Emerging Markets Currency Volatility(VXY) 11.1 +.18%

• CBOE S&P 500 Implied Correlation Index 40.1 -2.1% 

• ISE Sentiment Index 126.0 +43.0 points
  

• Total Put/Call .83 -18.6%

• NYSE Arms 1.09 +55.7%

Credit Investor Angst:

• North American Investment Grade CDS Index 72.15 -.48%
  

• US Energy High-Yield OAS 368.38 +3.1%

• European Financial Sector CDS Index 87.21 -1.4%

• Italian/German 10Y Yld Spread 162.0 -3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 109.0 +2.5%
  

• Emerging Market CDS Index 250.79 +.79%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 29.32 -.46%
• Russia Sovereign Debt Credit Default Swap 10,160.3 -.99%
  

• 2-Year Swap Spread 25.0 -.25 basis point
  

• TED Spread 28.0 -5.0 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -21.75 +1.0 basis point
  
• MBS  5/10 Treasury Spread  115.0 -6.0 basis points
  
• iShares CMBS ETF 49.27 +.77%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 53.32 +.01%
• 3-Month T-Bill Yield .72% +3.0 basis points
  

• Yield Curve 33.75 +5.75 basis points
  

• China Iron Ore Spot 155.25 USD/Metric Tonne +2.7%

• Citi US Economic Surprise Index 48.8 -8.2 points

• Citi Eurozone Economic Surprise Index 31.7 +1.8 points
  

• Citi Emerging Markets Economic Surprise Index 32.0 +1.0 point

• 10-Year TIPS Spread 2.90 -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:

• 72 new infections/100K people(last 7 days total). 4.0%(unch.) of 1/14 peak +2/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -93.6%(+.2 percentage point) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +41 open in Japan 
• China A50 Futures: Indicating -66 open in China

• DAX Futures: Indicating -103 open in Germany

Portfolio:

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

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

• Market Exposure:  Moved to Market Neutral