Stocks Slightly Lower into Final Hour on US Policy-Induced Stagflation Fears, Fed "Behind the Curve" Worries, Earnings Outlook Concerns, REIT/Metals&Mining Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance:  Most Sectors Declining
  

• Volume:  Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 35.9 +7.5%
• Bloomberg Global Risk On/Risk Off Index 3,886.0 -59.0 points

• Euro/Yen Carry Return Index 140.54 -.18%

• Emerging Markets Currency Volatility(VXY) 12.3 +1.7%

• CBOE S&P 500 Implied Correlation Index 54.5 +6.1% 

• ISE Sentiment Index 90.0 +4.0 points
  

• Total Put/Call 1.3 -4.6%

• NYSE Arms .75 -63.9%

Credit Investor Angst:

• North American Investment Grade CDS Index 85.1 +2.3%
  

• US Energy High-Yield OAS 381.59 +1.7%

• European Financial Sector CDS Index 101.6 -.6%

• Italian/German 10Y Yld Spread 189.0 +5.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 118.37 -.4%
  

• Emerging Market CDS Index 296.27 +4.0%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 29.27 -.06%
• Russia Sovereign Debt Credit Default Swap 3,717.66 +.3%
  

• 2-Year Swap Spread 32.75 -.75 basis point
  

• TED Spread 51.75 +5.75 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -21.75 unch.
  
• MBS  5/10 Treasury Spread  125.0 +2.0 basis points
  
• iShares CMBS ETF 48.29 -.84%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 52.11 -.58%
• 3-Month T-Bill Yield .78% -5.0 basis points
  

• Yield Curve 27.0 (2s/10s) +8.75 basis points
  

• China Iron Ore Spot 145.0 USD/Metric Tonne -.33%

• Citi US Economic Surprise Index 28.0 -11.4 points

• Citi Eurozone Economic Surprise Index 40.2 -12.9 points
  

• Citi Emerging Markets Economic Surprise Index 42.7 -5.6 points

• 10-Year TIPS Spread 2.83 -15.0 basis points
  
• 0.0%(unch.) chance of no change at June 15th FOMC meeting, 0.0%(unch.) chance of no change at July 27th meeting

US Covid-19:

• 123 new infections/100K people(last 7 days total). 7.0%(unch.) of 1/14 peak +8/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -91.3%(-.3 percentage point) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -103 open in Japan 
• China A50 Futures: Indicating -254 open in China

• DAX Futures: Indicating -64 open in Germany

Portfolio:

• Higher: On gains in my tech/consumer discretionary sector longs, index hedges and emerging market shorts
  

• Disclosed Trades:  Added to my (IWM)/(QQQ) hedges, then covered some
  

• Market Exposure:  Moved to 50% Net Long