Stocks Reversing Sharply Lower into Afternoon on US Policy-Induced Stagflation Fears, Fed "Behind the Curve" Worries, Forced Selling Concerns, Tech/Alt Energy Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance:  Almost Every Sector Declining
  

• Volume:  Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 32.0 +9.2%
• Bloomberg Global Risk On/Risk Off Index 3,726.0 -155.0 points

• Euro/Yen Carry Return Index 138.82 -.26%

• Emerging Markets Currency Volatility(VXY) 12.7 +.2%

• CBOE S&P 500 Implied Correlation Index 48.8 +6.1% 

• ISE Sentiment Index 76.0 -41.0 points
  

• Total Put/Call 1.22 +.83%

• NYSE Arms 1.62 +67.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 92.34 +2.7%
  

• US Energy High-Yield OAS 446.46 +.44%

• European Financial Sector CDS Index 110.50 +1.8%

• Italian/German 10Y Yld Spread 206.0 basis points +10.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 130.62 -.87%
  

• Emerging Market CDS Index 303.39 +1.1%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 28.65 -.09%
  
• Russia Sovereign Debt Credit Default Swap 10,121.0 -18.2%
  

• 2-Year Swap Spread 29.25 basis points -.75 basis point
  

• TED Spread 50.0 basis points +5.5 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -18.75 basis points -.75 basis point
  
• MBS  5/10 Treasury Spread  122.0 -1.0 basis point
  
• iShares CMBS ETF 48.59 +.26%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 52.15 +.24%
• 3-Month T-Bill Yield .99% -4.0 basis points
  

• Yield Curve 21.25 basis points (2s/10s) -2.5 basis points
  

• China Iron Ore Spot 131.1 USD/Metric Tonne +1.9%

• Citi US Economic Surprise Index -14.8 -1.5 points

• Citi Eurozone Economic Surprise Index 19.8 -2.5 points
  

• Citi Emerging Markets Economic Surprise Index 10.0 -2.3 points

• 10-Year TIPS Spread 2.59 -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:

• 219 new infections/100K people(last 7 days total). 13.0%(+1.0 percentage point) of 1/14 peak +13/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -84.9%(unch.) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -274 open in Japan 
• China A50 Futures: Indicating -73 open in China

• DAX Futures: Indicating -80 open in Germany

Portfolio:

• Slightly Higher: On gains in my index hedges and emerging market shorts
  

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

• Market Exposure:  Moved to Market Neutral