Stocks Slightly Higher into Final Hour on Earnings Optimism, Sector Rotation, Short-Covering, Tech/Commodity Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance:  Most Sectors Declining
  

• Volume:  Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 22.4 -1.2%
• Bloomberg Global Risk On/Risk Off Index 4,650.0 +48.0 points

• Euro/Yen Carry Return Index 140.80 -.03%

• Emerging Markets Currency Volatility(VXY) 10.9 -.3%

• CBOE S&P 500 Implied Correlation Index 42.1 -.12% 

• ISE Sentiment Index 104.0 +2.0 points
  

• Total Put/Call 105.0 +14.1%

• NYSE Arms .78 -26.4%

Credit Investor Angst:

• North American Investment Grade CDS Index 73.65 -1.3%
  

• US Energy High-Yield OAS 356.67 -.31%

• European Financial Sector CDS Index 87.69 -.09%

• Italian/German 10Y Yld Spread 164.0 unch.
  

• Asia Ex-Japan Investment Grade CDS Index 109.17 +1.5%
  

• Emerging Market CDS Index 259.8 +.3%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 29.5 +.04%
• Russia Sovereign Debt Credit Default Swap 10,627.94 +.26%
  

• 2-Year Swap Spread 26.75 +1.0 basis point
  

• TED Spread 31.5 +3.0 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -22.75 -.5 basis point
  
• MBS  5/10 Treasury Spread  117.0 unch.
  
• iShares CMBS ETF 48.95 -.28%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 53.36 +.28%
• 3-Month T-Bill Yield .77% +2.0 basis points
  

• Yield Curve 40.0 +3.0 basis points
  

• China Iron Ore Spot 154.4 USD/Metric Tonne -.3%

• Citi US Economic Surprise Index 66.30 +10.7 points

• Citi Eurozone Economic Surprise Index 25.0 -5.7 points
  

• Citi Emerging Markets Economic Surprise Index 45.1 +14.7 points

• 10-Year TIPS Spread 2.94 +3.0 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:

• 74 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 -93.4%(-.1 percentage point) 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 -11 open in China

• DAX Futures: Indicating +33 open in Germany

Portfolio:

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

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

• Market Exposure:  Moved to 50% Net Long