Stocks Surging into Close on Earnings Optimism, Technical Buying, Short-Covering, Tech/Energy Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance:  Almost Every Sector Rising
  

• Volume:  Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 28.2 -10.7%
• Bloomberg Global Risk On/Risk Off Index 4,314.0 +533.0 points

• Euro/Yen Carry Return Index 141.45 +1.5%

• Emerging Markets Currency Volatility(VXY) 12.3 +5.2%

• CBOE S&P 500 Implied Correlation Index 47.2 -4.8% 

• ISE Sentiment Index 94.0 +3.0 points
  

• Total Put/Call 1.17 +3.5%

• NYSE Arms .56 -22.2%

Credit Investor Angst:

• North American Investment Grade CDS Index 80.1 -2.5%
  

• US Energy High-Yield OAS 374.17 -.89%

• European Financial Sector CDS Index 99.72 +1.95%

• Italian/German 10Y Yld Spread 181.0 +4.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 121.11 -1.13%
  

• Emerging Market CDS Index 270.20 -.93%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 29.13 -.05%
• Russia Sovereign Debt Credit Default Swap 22,616.70 +18.6%
  

• 2-Year Swap Spread 32.0 +3.25 basis points
  

• TED Spread 42.75 +3.0 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -22.75 +.75 basis point
  
• MBS  5/10 Treasury Spread  121.0 -1.0 basis point
  
• iShares CMBS ETF 48.74 -.32%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 52.32 -.10%
• 3-Month T-Bill Yield .81% -1.0 basis point
  

• Yield Curve 20.5(2s/10s) -3.25 basis points
  

• China Iron Ore Spot 141.65 USD/Metric Tonne +.1%

• Citi US Economic Surprise Index 37.1 -25.1 points

• Citi Eurozone Economic Surprise Index 56.7 -1.3 points
  

• Citi Emerging Markets Economic Surprise Index 46.3 +4.9 points

• 10-Year TIPS Spread 2.98 +9.0 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:

• 113 new infections/100K people(last 7 days total). 7.0%(+1.0 percertage point) of 1/14 peak +5/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -91.2%(+.3 percentage point) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +560 open in Japan 
• China A50 Futures: Indicating -7 open in China

• DAX Futures: Indicating +155 open in Germany

Portfolio:

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

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

• Market Exposure:  Moved to 75% Net Long