Stocks Falling into Final Hour on US Policy-Induced Stagflation Fears, Fed "Behind the Curve" Worries, Diminished Russia/Ukraine Ceasefire Hopes, Tech/Alt Energy Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line:  Substantially Lower
  

• Sector Performance:  Most Sectors Declining
  

• Volume:  Around Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 20.4 +9.6%
• Bloomberg Global Risk On/Risk Off Index 4,455.0 +79.0 points

• Euro/Yen Carry Return Index 138.77 +.12%

• Emerging Markets Currency Volatility(VXY) 10.96 -.99%

• CBOE S&P 500 Implied Correlation Index 36.2 +10.8% 

• ISE Sentiment Index 101.0 -28.0 points
  

• Total Put/Call .88 +8.6%

• NYSE Arms .82 -6.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 65.49 +2.22%
  

• US Energy High-Yield OAS 332.07 -3.2%

• European Financial Sector CDS Index 84.14 +5.4%

• Italian/German 10Y Yld Spread 165.0 +9.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 98.52 -.7%
  

• Emerging Market CDS Index 225.98 +3.2%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 29.6 unch.
• Russia Sovereign Debt Credit Default Swap 4,412.26 +59.4%
  

• 2-Year Swap Spread 21.75 -.25 basis point
  

• TED Spread 33.0 -12.25 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -21.5 -.75 basis point
  
• MBS  5/10 Treasury Spread  113.0 +5.0 basis points
  
• iShares CMBS ETF 49.35 -.64%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 53.48 -.57%
• 3-Month T-Bill Yield .64% +9.0 basis points
  

• Yield Curve 4.75 +9.25 basis points
  

• China Iron Ore Spot 161.90 USD/Metric Tonne +.3%

• Citi US Economic Surprise Index 50.4 +.3 point

• Citi Eurozone Economic Surprise Index 36.0 +5.5 points
  

• Citi Emerging Markets Economic Surprise Index 32.8 -2.5 points

• 10-Year TIPS Spread 2.85 +2.0 basis points
  
• 0.0%(unch.) chance of no change at June 15th FOMC meeting, 0.0%(unch.) chance of no change at July 27th meeting

US Covid-19:

• 63 new infections/100K people(last 7 days total). 4.0%(unch.) of 1/14 peak -0/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -93.4%(-.1 percentage point) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -183 open in Japan 
• China A50 Futures: Indicating -98 open in China

• DAX Futures: Indicating -25 open in Germany

Portfolio:

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

• Disclosed Trades:  Added to my (IWM)/(QQQ) hedges and to my emerging market shorts
  

• Market Exposure:  Moved to 25% Net Long