Stocks Slightly Lower into Afternoon on More Hawkish Fed Commentary, Higher Long-Term Rates, Technical Selling, Biotech/Retail Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance:  Most Sectors Declining
  

• Volume:  Around Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 26.3 -1.0%
• Bloomberg Global Risk On/Risk Off Index 4,430.0 +240.0 points

• Euro/Yen Carry Return Index 142.13 +.42%

• Emerging Markets Currency Volatility(VXY) 12.1 -1.3%

• CBOE S&P 500 Implied Correlation Index 45.9 -1.3% 

• ISE Sentiment Index 97.0 +9.0 points
  

• Total Put/Call .91 +62.5%

• NYSE Arms .75 -14.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 79.52 +.6%
  

• US Energy High-Yield OAS 379.40 -2.7%

• European Financial Sector CDS Index 97.2 +3.5%

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

• Asia Ex-Japan Investment Grade CDS Index 110.75 +2.3%
  

• Emerging Market CDS Index 270.07 +1.7%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 28.7 -.42%
  
• Russia Sovereign Debt Credit Default Swap 9,643.46 -20.6%
  

• 2-Year Swap Spread 34.0 basis points +3.0 basis points
  

• TED Spread 54.75 basis points +1.25 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -15.5 basis points unch.
  
• MBS  5/10 Treasury Spread  117.0 +2.0 basis points
  
• iShares CMBS ETF 48.62 -.4%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 52.25 -.03%
• 3-Month T-Bill Yield 1.04% +1.0 basis point
  

• Yield Curve 29.0 basis points (2s/10s) +3.25 basis points
  

• China Iron Ore Spot 131.0 USD/Metric Tonne -1.6%

• Citi US Economic Surprise Index -37.8 +5.9 points

• Citi Eurozone Economic Surprise Index 19.6 +8.3 points
  

• Citi Emerging Markets Economic Surprise Index 19.2 +7.2 points

• 10-Year TIPS Spread 2.70 +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:

• 219 new infections/100K people(last 7 days total). 13.0%(unch.) of 1/14 peak +0/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -83.7%(n/a) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +6 open in Japan 
• China A50 Futures: Indicating -73 open in China

• DAX Futures: Indicating +53 open in Germany

Portfolio:

• Slightly Lower:  On losses in my tech/consumer discretionary/industrial sector longs
  

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

• Market Exposure:  Moved to 50% Net Long