Stocks Plunging into Final Hour on US Policy-Induced Stagflation Fears, Fed "Behind the Curve" Worries, Rising European/Emerging Markets/US High Yield Debt Angst, Consumer Discretionary/Transport Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance:  Almost Every Sector Declining
  

• Volume:  Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 30.4 +16.5%
• Bloomberg Global Risk On/Risk Off Index 3,923.0 -478.0 points

• Euro/Yen Carry Return Index 138.18 -1.6%

• Emerging Markets Currency Volatility(VXY) 12.7 +.08%

• CBOE S&P 500 Implied Correlation Index 48.3 +1.2% 

• ISE Sentiment Index 74.0 -30.0 points
  

• Total Put/Call 1.1 +10.9%

• NYSE Arms 1.94 +321.7%

Credit Investor Angst:

• North American Investment Grade CDS Index 90.32 +7.2%
  

• US Energy High-Yield OAS 435.15 +3.2%

• European Financial Sector CDS Index 106.60 +5.0%

• Italian/German 10Y Yld Spread 193.0 basis points +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 126.68 +.32%
  

• Emerging Market CDS Index 301.75 +3.5%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 28.61 -.34%
  
• Russia Sovereign Debt Credit Default Swap 15,754.8 +190.0%
  

• 2-Year Swap Spread 28.5 basis points -.25 basis point
  

• TED Spread 41.75 basis points unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -17.75 basis points +.25 basis point
  
• MBS  5/10 Treasury Spread  128.0 +2.0 basis points
  
• iShares CMBS ETF 48.5 +.54%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 51.62 -.47%
• 3-Month T-Bill Yield 1.02% -3.0 basis points
  

• Yield Curve 21.75 basis points (2s/10s) -4.75 basis points
  

• China Iron Ore Spot 122.2 USD/Metric Tonne -3.6%

• Citi US Economic Surprise Index -2.3 -2.5 points

• Citi Eurozone Economic Surprise Index 24.5 -1.6 points
  

• Citi Emerging Markets Economic Surprise Index 16.3 -1.5 points

• 10-Year TIPS Spread 2.75 unch.
  
• 0.0%(unch.) chance of no change at July 27th FOMC meeting, 0.0%(unch.) chance of no change at September 21st meeting

US Covid-19:

• 206 new infections/100K people(last 7 days total). 12.0%(unch.) of 1/14 peak +0/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -85.4%(+2.1 percentage points) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -541 open in Japan 
• China A50 Futures: Indicating -164 open in China

• DAX Futures: Indicating -131 open in Germany

Portfolio:

• Lower: On losses in my commodity/industrial/medical/tech/consumer discretionary sector longs
  

• Disclosed Trades:  Added to my (IWM)/(QQQ) hedges and took profits in some consumer discretionary longs
  

• Market Exposure:  Moved to Market Neutral