Stocks Modestly Higher into Afternoon on Earnings Optimism, Lower Long-Term Rates, Short-Covering, Tech/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line:  Modestly Higher
  

• Sector Performance:  Most Sectors Rising
  

• Volume:   Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 29.5 -3.3%
• Bloomberg Global Risk On/Risk Off Index 2,645.0 +128.0 points

• Euro/Yen Carry Return Index 132.50 -.01%

• Emerging Markets Currency Volatility(VXY) 9.7 +.2%

• CBOE S&P 500 Implied Correlation Index 46.6 +1.6% 

• ISE Sentiment Index 100.0  +12.0 points
  

• Total Put/Call 1.04 -2.8%

• NYSE Arms .95 +21.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 62.57 +.6%
  

• US Energy High-Yield OAS 387.5 +2.1%

• European Financial Sector CDS Index 68.03 +3.3%

• Italian/German 10Y Yld Spread 133.0 -2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 91.50 +1.0%
  

• Emerging Market CDS Index 218.68 +.17%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 31.60 -.88% 
• Ukraine Sovereign Debt Credit Default Swap 802.20 -.33%
  

• 2-Year Swap Spread 15.5 +1.5 basis point
  

• TED Spread 12.5 +4.25 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -12.75 -.25 basis point
  
• MBS  5/10 Treasury Spread  86.0 unch.
  
• IHS Markit CMBX BBB- 6 75.25 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 53.90 -.04%
• 3-Month T-Bill Yield .18% -1.0 basis point
  

• Yield Curve 63.0 -3.75 basis points
  

• China Iron Ore Spot 140.15 USD/Metric Tonne +.7%

• Citi US Economic Surprise Index -2.7 -2.7 points

• Citi Eurozone Economic Surprise Index 50.7 -15.0 points
  

• Citi Emerging Markets Economic Surprise Index 36.2 +4.8 points

• 10-Year TIPS Spread 2.45 +5.0 basis points
  
• 0.0%(unch.) chance of no change at May 4th FOMC meeting, 0.0%(unch.) chance of no change at June 15th meeting

US Covid-19:

• 1,265 new infections/100K people(last 7 days total). 74.0%(-2.0 percentage points) of 1/14 peak -43/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -10.6%(unch.) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -242 open in Japan 
• China A50 Futures: Indicating -84 open in China

• DAX Futures: Indicating -20 open in Germany

Portfolio:

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

• Disclosed Trades:  Covered some of my (IWM)/(QQQ) hedges, then added them back
  

• Market Exposure:  50% Net Long