Stocks Reversing Higher into Afternoon on Lower Long-Term Rates, Bargain-Hunting, Technical Buying, Tech/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance:  Mixed
  

• Volume:  Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 33.1 -4.8%
• Bloomberg Global Risk On/Risk Off Index 3,801.0 +35.0 points

• Euro/Yen Carry Return Index 141.46 -.16%

• Emerging Markets Currency Volatility(VXY) 12.7 -.24%

• CBOE S&P 500 Implied Correlation Index 51.9 -1.4% 

• ISE Sentiment Index 100.0 +21.0 points
  

• Total Put/Call 1.06 -15.2%

• NYSE Arms 1.11 -31.5%

Credit Investor Angst:

• North American Investment Grade CDS Index 86.94 -2.2%
  

• US Energy High-Yield OAS 419.53 +.77%

• European Financial Sector CDS Index 106.52 -1.8%

• Italian/German 10Y Yld Spread 200.0 basis points -6.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 131.22 +2.2%
  

• Emerging Market CDS Index 297.28 -1.7%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 28.99 -.22%
• Russia Sovereign Debt Credit Default Swap 4,794.51 -1.1%
  

• 2-Year Swap Spread 28.0 basis points unch.
  

• TED Spread 52.25 basis points -7.75 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -17.75 +1.0 basis point
  
• MBS  5/10 Treasury Spread  120.0 -5.0 basis points
  
• iShares CMBS ETF 48.35 -.59%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 51.75 -.16%
• 3-Month T-Bill Yield .88% +8.0 basis points
  

• Yield Curve 36.0 (2s/10s) -7.75 basis points
  

• China Iron Ore Spot 127.85 USD/Metric Tonne +1.1%

• Citi US Economic Surprise Index 14.5 -1.8 points

• Citi Eurozone Economic Surprise Index 29.1 +3.8 points
  

• Citi Emerging Markets Economic Surprise Index 41.5 +.2 point

• 10-Year TIPS Spread 2.66 -8.0 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:

• 156 new infections/100K people(last 7 days total). 9.0%(unch.) of 1/14 peak na/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -89.3%(unch.) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +43 open in Japan 
• China A50 Futures: Indicating -111 open in China

• DAX Futures: Indicating +91 open in Germany

Portfolio:

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

• Disclosed Trades:  Covered some of my (IWM)/(QQQ) hedges and some of my emerging market shorts
  

• Market Exposure:  Moved to 75% Net Long