Stocks Sharply Higher into Final Hour on US Economic "Soft Landing" Hopes, China Peak Virus Lockdown Expectations, Short-Covering, Alt Energy/Gambling 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) 30.0 -5.6%
• Bloomberg Global Risk On/Risk Off Index 3,970.0 +416.0 points

• Euro/Yen Carry Return Index 138.5 +1.0%

• Emerging Markets Currency Volatility(VXY) 12.8 +.6%

• CBOE S&P 500 Implied Correlation Index 48.9 +1.9% 

• ISE Sentiment Index 108.0 +115.0 points
  

• Total Put/Call .95 -24.6%

• NYSE Arms .44 -33.3%

Credit Investor Angst:

• North American Investment Grade CDS Index 86.0 -1.6%
  

• US Energy High-Yield OAS 429.54 -.89%

• European Financial Sector CDS Index 102.50 -2.4%

• Italian/German 10Y Yld Spread 190.0 basis points -1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 130.75 -1.2%
  

• Emerging Market CDS Index 293.99 -.92%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 28.64 -.57%
• Russia Sovereign Debt Credit Default Swap 5,280.66 -2.3%
  

• 2-Year Swap Spread 28.75 basis points +.5 basis point
  

• TED Spread 46.0 basis points -5.25 basis points
  

• 3-Month EUR/USD Cross-Currency Basis Swap -21.5 basis points -3.75 basis points
  
• MBS  5/10 Treasury Spread  125.0 +2.0 basis points
  
• iShares CMBS ETF 48.46 -.41%
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 51.74 unch.
• 3-Month T-Bill Yield .96% +8.0 basis points
  

• Yield Curve 33.25 basis points (2s/10s) +5.0 basis points
  

• China Iron Ore Spot 128.35 USD/Metric Tonne -1.09%

• Citi US Economic Surprise Index 12.8 +8.3 points

• Citi Eurozone Economic Surprise Index 26.8 -1.5 points
  

• Citi Emerging Markets Economic Surprise Index 33.6 -4.9 points

• 10-Year TIPS Spread 2.73 +1.0 basis point
  
• 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:

• 191 new infections/100K people(last 7 days total). 11.0%(+1.0 percentage point) of 1/14 peak +27/100K people from prior report.
  
• New Covid-19 patient hospital admissions per 100K population -87.7%(+.2 percentage point) from peak 7-day avg. of 1/9/21 - 1/15/22
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +178 open in Japan 
• China A50 Futures: Indicating +5 open in China

• DAX Futures: Indicating -7 open in Germany

Portfolio:

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

• Disclosed Trades:  Covered some of my (IWM)/(QQQ) hedges, then added them back
  

• Market Exposure:  50% Net Long