Stocks Slightly Lower into Afternoon on China Bubble-Bursting Fears, US Policy-Induced Stagflation Worries, Earnings Outlook Jitters, Commodity/Telecom Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance:  Most Sectors Declining
  

• Volume:  Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 30.2 +7.0%
• Bloomberg Global Risk On/Risk Off Index 3,866.0 -467.0 points

• Euro/Yen Carry Return Index 140.80 -1.4%

• Emerging Markets Currency Volatility(VXY) 11.5 +1.5%

• CBOE S&P 500 Implied Correlation Index 47.3 -.1% 

• ISE Sentiment Index 97.0 +27.0 points
  

• Total Put/Call 1.12 -13.2%

• NYSE Arms 1.09 -35.1%

Credit Investor Angst:

• North American Investment Grade CDS Index 79.02 -.04%
  

• US Energy High-Yield OAS 375.19 +4.3%

• European Financial Sector CDS Index 94.17 +3.7%

• Italian/German 10Y Yld Spread 174.0 +4.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 120.22 +6.3%
  

• Emerging Market CDS Index 269.03 -1.29%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 29.36 -.41%
• Russia Sovereign Debt Credit Default Swap 12,505.70 +4.1%
  

• 2-Year Swap Spread 29.5 -.5 basis point
  

• TED Spread 45.0 +9.0 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -22.75 -2.25 basis points
  
• MBS  5/10 Treasury Spread  123.0 unch.
  
• iShares CMBS ETF 48.92 +.43%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 52.70 -.56%
• 3-Month T-Bill Yield .82% +2.0 basis points
  

• Yield Curve 20.5(2s/10s) +1.75 basis points
  

• China Iron Ore Spot 138.75 USD/Metric Tonne -1.4%

• Citi US Economic Surprise Index 62.50 -4.6 points

• Citi Eurozone Economic Surprise Index 57.0 +5.4 points
  

• Citi Emerging Markets Economic Surprise Index 39.5 -4.3 points

• 10-Year TIPS Spread 2.91 -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:

• 99 new infections/100K people(last 7 days total). 6.0%(+1.0 percentage point) of 1/14 peak +7/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -92.4%(+.1 percentage point) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating 85 open in Japan 
• China A50 Futures: Indicating -82 open in China

• DAX Futures: Indicating +106 open in Germany

Portfolio:

• Higher: On gains in my tech/medical/consumer discretionary sector longs and emerging market shorts
  

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

• Market Exposure:  Moved to 50% Net Long