Stocks Higher into Afternoon on China Peak Virus Lockdown Optimism, Dollar Weakness, Short-Covering, Airlines/Alt Energy Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance:  Almost Every Sector Rising
  

• Volume:  Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 25.7 -6.5%
• Bloomberg Global Risk On/Risk Off Index 4,426.0 +361.0 points

• Euro/Yen Carry Return Index 140.15 +1.09%

• Emerging Markets Currency Volatility(VXY) 12.6 -1.3%

• CBOE S&P 500 Implied Correlation Index 46.4 -1.6% 

• ISE Sentiment Index 107.0 +11.0 points
  

• Total Put/Call 1.0 +2.0%

• NYSE Arms .66 -39.5%

Credit Investor Angst:

• North American Investment Grade CDS Index 84.6 -1.8%
  

• US Energy High-Yield OAS 425.0 -2.4%

• European Financial Sector CDS Index 101.52 -1.8%

• Italian/German 10Y Yld Spread 192.0 basis points +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 126.39 -2.4%
  

• Emerging Market CDS Index 292.43 -1.6%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 28.72 -.07%
  
• Russia Sovereign Debt Credit Default Swap 5,432.32 -2.5%
  

• 2-Year Swap Spread 28.75 basis points +.25 basis point
  

• TED Spread 41.75 basis points -9.75 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -18.0 basis points -2.25 basis points
  
• MBS  5/10 Treasury Spread  126.0 +4.0 basis points
  
• iShares CMBS ETF 48.2 -.82%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 51.77 +.01%
• 3-Month T-Bill Yield 1.05% +5.0 basis points
  

• Yield Curve 26.5 basis points (2s/10s) -4.0 basis points
  

• China Iron Ore Spot 128.9 USD/Metric Tonne -.5%

• Citi US Economic Surprise Index .2 +3.5 points

• Citi Eurozone Economic Surprise Index 26.1 +3.6 points
  

• Citi Emerging Markets Economic Surprise Index 17.8 +3.7 points

• 10-Year TIPS Spread 2.75 +5.0 basis points
  
• 0.0%(unch.) chance of no change at July 27th FOMC meeting, 0.0%(unch.) chance of no change at September 21st meeting

US Covid-19:

• 206 new infections/100K people(last 7 days total). 12.0%(+1.0 percentage point) of 1/14 peak +22/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -87.5%(-.5 percentage point) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +49 open in Japan 
• China A50 Futures: Indicating -79 open in China

• DAX Futures: Indicating -7 open in Germany

Portfolio:

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

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

• Market Exposure:  Moved to 25% Net Long