Stocks Higher into Final Hour on Diminishing Global Virus Lockdown/Mandate Fears, Earnings Optimism, Short-Covering, Financial/Consumer Discretionary Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line:  Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume:  Around Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 21.9 -4.6%
• Bloomberg Global Risk On/Risk Off Index 3,862.0 +185.0 points

• Euro/Yen Carry Return Index 135.87 +.19%

• Emerging Markets Currency Volatility(VXY) 9.1 -.65%

• CBOE S&P 500 Implied Correlation Index 38.3 -2.2% 

• ISE Sentiment Index 123.0  +18.0 points
  

• Total Put/Call .99 +5.3%

• NYSE Arms .89 +6.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 62.38 -2.3%
  

• US Energy High-Yield OAS 402.08 -1.15%

• European Financial Sector CDS Index 72.30 -3.9%

• Italian/German 10Y Yld Spread 158.0 +3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 96.99 +.25%
  

• Emerging Market CDS Index 212.67 -2.0%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 31.38 -.25% 
• Ukraine Sovereign Debt Credit Default Swap 762.89 -2.1%
  

• 2-Year Swap Spread 17.75 -.75 basis point
  

• TED Spread 8.75 -2.75 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -12.0 -.75 basis point
  
• MBS  5/10 Treasury Spread  87.50 +1.5 basis points
  
• IHS Markit CMBX BBB- 6 75.0 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 54.47 +.11%
• 3-Month T-Bill Yield .25% +4.0 basis points
  

• Yield Curve 63.25 +1.0 basis point
  

• China Iron Ore Spot 147.60 USD/Metric Tonne -2.7%

• Citi US Economic Surprise Index -7.3 -.2 point

• Citi Eurozone Economic Surprise Index 50.0 +.3 point
  

• Citi Emerging Markets Economic Surprise Index 29.0 -.3 point

• 10-Year TIPS Spread 2.44 +3.0 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:

• 541 new infections/100K people(last 7 days total). 32.0%(-5.0 percentage points) of 1/14 peak -99/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -39.5%(-4.1 percentage points) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +80 open in Japan 
• China A50 Futures: Indicating +37 open in China

• DAX Futures: Indicating +24 open in Germany

Portfolio:

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

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

• Market Exposure:  Moved to 75% Net Long