Stocks Reversing Higher into Final Hour on Weak Sanctions on Russia, Lower Long-Term Rates, Short-Covering, Tech/Consumer Discretionary Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line:  Lower
  

• Sector Performance: Mixed
  

• Volume:  Heavy

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 32.9 +6.1%
• Bloomberg Global Risk On/Risk Off Index 2,619.0 -260.0 points

• Euro/Yen Carry Return Index 133.14 -.57%

• Emerging Markets Currency Volatility(VXY) 10.6 +17.2%

• CBOE S&P 500 Implied Correlation Index 49.6 -1.8% 

• ISE Sentiment Index 93.0 +2.0 points
  

• Total Put/Call .99 +4.2%

• NYSE Arms 1.05 +6.1%

Credit Investor Angst:

• North American Investment Grade CDS Index 70.10 -.40%
  

• US Energy High-Yield OAS 434.19 +2.3%

• European Financial Sector CDS Index 83.83 +3.5%

• Italian/German 10Y Yld Spread 165.0 -6.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 108.50 +6.0%
  

• Emerging Market CDS Index 263.67 +6.9%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 30.77 -1.0% 
• Ukraine Sovereign Debt Credit Default Swap 1,041.31 +15.5%
  

• 2-Year Swap Spread 18.5 -1.5 basis points
  

• TED Spread 20.75 +6.25 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -23.75 -5.25 basis points
  
• MBS  5/10 Treasury Spread  107.0 +1.0 basis point
  
• iShares CMBS ETF 51.24 +.12%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 53.40 -1.63%
• 3-Month T-Bill Yield .28% -7.0 basis points
  

• Yield Curve 37.0 -4.0 basis points
  

• China Iron Ore Spot 137.70 USD/Metric Tonne +.3%

• Citi US Economic Surprise Index 31.1 -.3 point

• Citi Eurozone Economic Surprise Index 64.1 -1.1 points
  

• Citi Emerging Markets Economic Surprise Index 37.2 -.9 point

• 10-Year TIPS Spread 2.60 +6.0 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:

• 170 new infections/100K people(last 7 days total). 10.0%(-1.0 percentage point) of 1/14 peak -16/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -72.0%(-1.4 percentage points) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +120 open in Japan 
• China A50 Futures: Indicating +16 open in China

• DAX Futures: Indicating +157 open in Germany

Portfolio:

• Higher: On gains in my tech/consumer discretionary/industrial/medical sector longs and emerging market shorts
  

• Disclosed Trades:  Covered some of my (IWM)/(QQQ) hedges and emerging market shorts
  

• Market Exposure:  Moved to 75% Net Long