Stocks Falling Substantially into Afternoon on US Policy-Induced Stagflation Fears, Fed "Behind the Curve" Worries, Earnings Outlook Concerns, Healthcare/Commodity Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance:  Every Sector Declining
  

• Volume:  Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 26.5 +16.7%
• Bloomberg Global Risk On/Risk Off Index 4,450.0 -246.0 points

• Euro/Yen Carry Return Index 142.64 -.29%

• Emerging Markets Currency Volatility(VXY) 11.2 +2.2%

• CBOE S&P 500 Implied Correlation Index 44.1 +10.4% 

• ISE Sentiment Index 80.0 -6.0 points
  

• Total Put/Call 1.23 +12.8%

• NYSE Arms 1.25 -1.6%

Credit Investor Angst:

• North American Investment Grade CDS Index 79.28 +5.1%
  

• US Energy High-Yield OAS 354.16 +1.4%

• European Financial Sector CDS Index 90.78 +2.7%

• Italian/German 10Y Yld Spread 170.0 +4.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 112.97 +2.5%
  

• Emerging Market CDS Index 272.05 +4.4%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 29.49 +.17%
• Russia Sovereign Debt Credit Default Swap 12,011.3 +6.0%
  

• 2-Year Swap Spread 30.0 +1.75 basis points
  

• TED Spread 36.0 +8.25 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -20.5 -1.75 basis points
  
• MBS  5/10 Treasury Spread  123.0 +5.0 basis points
  
• iShares CMBS ETF 48.66 -.05%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 52.94 -.45%
• 3-Month T-Bill Yield .80% -2.0 basis points
  

• Yield Curve 18.75 -3.75 basis points
  

• China Iron Ore Spot 143.10 USD/Metric Tonne -5.1%

• Citi US Economic Surprise Index 67.10 +.2 point

• Citi Eurozone Economic Surprise Index 51.6 +19.1 points
  

• Citi Emerging Markets Economic Surprise Index 43.8 +.7 point

• 10-Year TIPS Spread 3.0 -3.0 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:

• 92 new infections/100K people(last 7 days total). 5.0%(unch.) of 1/14 peak +4/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -92.5%(+.3 percentage point) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -230 open in Japan 
• China A50 Futures: Indicating -119 open in China

• DAX Futures: Indicating -22 open in Germany

Portfolio:

• Slightly Higher: On gains in my index hedges and emerging market shorts
  

• Disclosed Trades:  Added to my (IWM)/(QQQ) hedges
  

• Market Exposure:  Moved to Market Neutral