Stocks Rising into Afternoon on Lower Long-Term Rates, Dollar Weakness, Short-Covering, Consumer Discretionary/Tech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line:  Higher
  

• Sector Performance:  Almost Every Sector Rising
  

• Volume:  Below Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 22.4 -7.7%
• Bloomberg Global Risk On/Risk Off Index 4,441.0 +97.0 points

• Euro/Yen Carry Return Index 140.72 +.7%

• Emerging Markets Currency Volatility(VXY) 11.0 -1.0%

• CBOE S&P 500 Implied Correlation Index 40.6 -3.1% 

• ISE Sentiment Index 119.0 +14.0 points
  

• Total Put/Call .89 -4.3%

• NYSE Arms .64 -48.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 72.48 -.43%
  

• US Energy High-Yield OAS 372.96 +1.8%

• European Financial Sector CDS Index 88.4 +1.3%

• Italian/German 10Y Yld Spread 161.0 -1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 109.75 +.5%
  

• Emerging Market CDS Index 248.50 -1.8%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 29.42 +.28%
• Russia Sovereign Debt Credit Default Swap 10,650.76 +4.8%
  

• 2-Year Swap Spread 26.5 +1.5 basis points
  

• TED Spread 28.0 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -21.5 -.25 basis point
  
• MBS  5/10 Treasury Spread  115.0 -6.0 basis points
  
• iShares CMBS ETF 49.33 +.1%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 53.53 +.38%
• 3-Month T-Bill Yield .74% +2.0 basis points
  

• Yield Curve 33.75 unch.
  

• China Iron Ore Spot 153.0 USD/Metric Tonne -1.7%

• Citi US Economic Surprise Index 50.60 +1.8 points

• Citi Eurozone Economic Surprise Index 31.7 unch.
  

• Citi Emerging Markets Economic Surprise Index 33.2 +1.2 points

• 10-Year TIPS Spread 2.83 -7.0 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 +0/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -93.2%(+.4 percentage point) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +93 open in Japan 
• China A50 Futures: Indicating +73 open in China

• DAX Futures: Indicating +3 open in Germany

Portfolio:

• Slightly Higher: On gains in my commodity/consumer discretionary/tech/medical/industrial sector longs
  

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

• Market Exposure:  Moved to 75% Net Long