Stocks Sharply Higher into Final Hour on Dollar Weakness, Short-Covering, Technical Buying, Energy/Healthcare Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance:  Almost Every Sector Rising
  

• Volume:  Around Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 29.5 -4.9%
• DJIA Intraday % Swing 1.45% -15.8%
  
• Bloomberg Global Risk On/Risk Off Index 4,964.0 +333.0 points

• Euro/Yen Carry Return Index 147.96 +1.24%

• Emerging Markets Currency Volatility(VXY) 12.2 -3.8%

• CBOE S&P 500 Implied Correlation Index 48.7 -2.0% 

• ISE Sentiment Index 118.0 +23.0 points
  

• Total Put/Call .87 -70.0%

• NYSE Arms .69 -31.7%

Credit Investor Angst:

• North American Investment Grade CDS Index 98.14 -2.1%
  

• US Energy High-Yield OAS 440.93 -1.9%
• Bloomberg TRACE # Distressed Bonds Traded 386.0 -2.0
  

• European Financial Sector CDS Index 116.02 -1.7%

• Italian/German 10Y Yld Spread 193.0 basis points -2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 128.84 -3.2%
  

• Emerging Market CDS Index 319.65 -2.2%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 28.09 -.21%
  
• Ukraine Sovereign Debt Credit Default Swap 7,570.90 -5.7%
  

• 2-Year Swap Spread 40.5 basis points -.5 basis point
  

• TED Spread 60.25 basis points +4.25 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -22.5 basis points -1.5 basis points
  
• MBS  5/10 Treasury Spread  136.0 -1.5 basis points
  
• iShares CMBS ETF 47.30 -.24%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 50.76 +.35%
• 3-Month T-Bill Yield 1.52% -4.0 basis points
  

• Yield Curve 10.5 basis points (2s/10s) +6.5 basis points
  

• China Iron Ore Spot 114.1 USD/Metric Tonne -.7%

• Citi US Economic Surprise Index -68.3 -2.8 points

• Citi Eurozone Economic Surprise Index 29.2 -1.1 points
  

• Citi Emerging Markets Economic Surprise Index 24.3 -.7 point

• 10-Year TIPS Spread 2.62 +3.0 basis points
  
• 0.0%(unch.) chance of no change at September 21st FOMC meeting, 0.0%(unch.) chance of no change at November 2nd meeting

US Covid-19:

• 194 new infections/100K people(last 7 days total). 11.0%(-2.0 percentage points) of 1/14 peak -13/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -80.1%(-.6 percentage point) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +244 open in Japan 
• China A50 Futures: Indicating +65 open in China

• DAX Futures: Indicating -77 open in Germany

Portfolio:

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

• Disclosed Trades:  Covered some of my index hedges
  

• Market Exposure:  Moved to 75% Net Long