Stocks Higher into Final Hour on Technical Buying, US Dollar Weakness, Bargain-Hunting, Financial/Commodity Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance:  Most Sectors Rising
  

• Volume:  Around Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 28.4 -3.5%
• Bloomberg Global Risk On/Risk Off Index 4,018.0 +140.0 points

• Euro/Yen Carry Return Index 140.61 +1.17%

• Emerging Markets Currency Volatility(VXY) 12.34 -3.0%

• CBOE S&P 500 Implied Correlation Index 49.2 +2.2% 

• ISE Sentiment Index 101.0 +21.0 points
  

• Total Put/Call .95 -22.1%

• NYSE Arms .97 +3.2%

Credit Investor Angst:

• North American Investment Grade CDS Index 88.73 -2.0%
  

• US Energy High-Yield OAS 439.41 -1.7%

• European Financial Sector CDS Index 106.26 -3.8%

• Italian/German 10Y Yld Spread 202.0 basis points -4.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 128.96 -1.6%
  

• Emerging Market CDS Index 288.58 -5.2%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 28.94 +.8%
  
• Russia Sovereign Debt Credit Default Swap 10,244.40 +1.2%
  

• 2-Year Swap Spread 29.5 basis points +.25 basis point
  

• TED Spread 49.75 basis points -.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -18.25 basis points +.5 basis point
  
• MBS  5/10 Treasury Spread  120.0 -2.0 basis points
  
• iShares CMBS ETF 48.38 -.56%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 52.57 +.74%
• 3-Month T-Bill Yield 1.0% -1.0 basis point
  

• Yield Curve 22.75 basis points (2s/10s) +1.5 basis points
  

• China Iron Ore Spot 133.7 USD/Metric Tonne +.5%

• Citi US Economic Surprise Index -20.8 -6.0 points

• Citi Eurozone Economic Surprise Index 18.5 -1.3 points
  

• Citi Emerging Markets Economic Surprise Index 12.0 +2.0 points

• 10-Year TIPS Spread 2.63 +4.0 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:

• 224 new infections/100K people(last 7 days total). 13.0%(unch.) of 1/14 peak +5/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -85.0%(-.1 percentage point) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +89 open in Japan 
• China A50 Futures: Indicating +17 open in China

• DAX Futures: Indicating -25 open in Germany

Portfolio:

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

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

• Market Exposure:  Moved to 75% Net Long