Stocks Higher into Final Hour on Lower Long-Term Rates, Short-Covering, Technical Buying, Energy/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance:  Most Sectors Rising
  

• Volume:  Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 24.2 -3.4%
• Bloomberg Global Risk On/Risk Off Index 4,963.0 +17.0 points

• Euro/Yen Carry Return Index 145.93 +.56%

• Emerging Markets Currency Volatility(VXY) 12.1 +1.9%

• CBOE S&P 500 Implied Correlation Index 43.9 +1.0% 

• ISE Sentiment Index 129.0 +35.0 points
  

• Total Put/Call 1.03 unch.

• NYSE Arms .89 +17.1%

Credit Investor Angst:

• North American Investment Grade CDS Index 81.7 unch.
  

• US Energy High-Yield OAS 376.58 +2.6%
• Bloomberg TRACE # Distressed Bonds Traded 291.0 +14.0
  

• European Financial Sector CDS Index 98.21 +.83%

• Italian/German 10Y Yld Spread 200.0 basis points -9.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 107.66 -.46%
  

• Emerging Market CDS Index 278.4 +.43%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 28.8 unch.
  
• Russia Sovereign Debt Credit Default Swap 10,195.4 n/a
  

• 2-Year Swap Spread 36.0 basis points -1.5 basis points
  

• TED Spread 39.0 basis points -10.5 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -14.75 basis points -.25 basis point
  
• MBS  5/10 Treasury Spread  114.0 -8.0 basis points
  
• iShares CMBS ETF 48.22 +.34%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 51.93 -.42%
• 3-Month T-Bill Yield 1.23% +5.0 basis points
  

• Yield Curve 23.5 basis points (2s/10s) -7.0 basis points
  

• China Iron Ore Spot 144.95 USD/Metric Tonne +.5%

• Citi US Economic Surprise Index -43.4 +.8 point

• Citi Eurozone Economic Surprise Index 16.5 +1.6 points
  

• Citi Emerging Markets Economic Surprise Index 14.8 +.8 point

• 10-Year TIPS Spread 2.74 -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:

• 260 new infections/100K people(last 7 days total). 15.0%(+2.0 percentage points) of 1/14 peak +33/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -81.4%(+1.5 percentage point) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +217 open in Japan 
• China A50 Futures: Indicating +54 open in China

• DAX Futures: Indicating +13 open in Germany

Portfolio:

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

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

• Market Exposure:  Moved to 50% Net Long