Stocks Modestly Higher into Final Hour on Earnings Optimism, Bargain-Hunting, Technical Buying, Commodity/Pharma Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance:  Most Sectors Rising
  

• Volume:  Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 30.2 -9.9%
• Bloomberg Global Risk On/Risk Off Index 3,873.0 +344.0 points

• Euro/Yen Carry Return Index 139.25 +.1%

• Emerging Markets Currency Volatility(VXY) 11.5 unch.

• CBOE S&P 500 Implied Correlation Index 48.5 -2.5% 

• ISE Sentiment Index 86.0 -11.0 points
  

• Total Put/Call 1.12 +5.7%

• NYSE Arms .72 -56.1%

Credit Investor Angst:

• North American Investment Grade CDS Index 81.15 -.30%
  

• US Energy High-Yield OAS 379.48 -.89%

• European Financial Sector CDS Index 97.82 -.01%

• Italian/German 10Y Yld Spread 177.0 +3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 122.84 +2.7%
  

• Emerging Market CDS Index 271.53 -2.0%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 29.13 -.02%
• Russia Sovereign Debt Credit Default Swap 19,062.50 +27.5%
  

• 2-Year Swap Spread 28.75 -2.5 basis points
  

• TED Spread 39.75 -2.0 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -23.5 -.25 basis point
  
• MBS  5/10 Treasury Spread  122.0 -1.0 basis point
  
• iShares CMBS ETF 48.85 -.51%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 52.36 -.06%
• 3-Month T-Bill Yield .81% -1.0 basis point
  

• Yield Curve 23.75(2s/10s) +.75 basis point
  

• China Iron Ore Spot 140.75 USD/Metric Tonne +.4%

• Citi US Economic Surprise Index 62.0 -.5 point

• Citi Eurozone Economic Surprise Index 58.0 +.8 point
  

• Citi Emerging Markets Economic Surprise Index 41.4 -.7 point

• 10-Year TIPS Spread 2.89 +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:

• 108 new infections/100K people(last 7 days total). 6.0%(unch.) of 1/14 peak +3/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -91.5%(+.9 percentage point) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +114 open in Japan 
• China A50 Futures: Indicating +37 open in China

• DAX Futures: Indicating +31 open in Germany

Portfolio:

• Slightly Lower: On losses in my tech/medical sector longs and emerging market shorts
  

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

• Market Exposure:  Moved to 50% Net Long