Tuesday Watch

Late Buy/Sell Recommendations
Citigroup:

- Reiterated Buy on (INTC), target $16.

Night Trading
Asian Indices are -1.75% to +.25% on average.
S&P 500 futures +1.29%.
NASDAQ 100 futures +.90%.

Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Pre-market Stock Quote/Chart
Global Commentary
WSJ Intl Markets Performance
Commodity Futures
Top 25 Stories
Top 20 Business Stories
Today in IBD
In Play
Bond Ticker
Economic Preview/Calendar
Earnings Calendar

Conference Calendar

Who’s Speaking?
Upgrades/Downgrades
Rasmussen Business/Economy Polling

Earnings of Note
Company/EPS Estimate
- (AZO)/1.85

- (CHS)/-.17

- (JTX)/.73

- (TECD)/.72

- (PAY)/.15

- (KCP)/-.28

Economic Releases

10:00 am EST

- Pending Home Sales for January are estimated to fall 3.5% versus a 6.3% increase in December.

Afternoon:

- Total Vehicle Sales for February are estimated to fall to 9.4M versus 9.6M in January.

Upcoming Splits
- None of note

Other Potential Market Movers
- The Fed’s Lockhart speaking, Bernanke’s Testimony Before Senate Budget Committee, weekly retail sales reports, (SD) analyst conference, (BP) strategy presentation, (JAH) analyst day, (EAC) analyst meeting, (LMNX) analyst meeting, (ARRS) analyst meeting, Deutsche Bank Media/Telecom Conference, Citi Global Property Conference, Sandler O’Neill Financial Services Conference and Morgan Stanley Tech Conference could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by commodity and utility stocks in the region. I expect US equities to open modestly higher and to maintain gains into the afternoon. The Portfolio is 50% net long heading into the day.

Stocks Finish Sharply Lower, Weighed Down by Commodity, Financial, HMO, Airline, Gaming, Construction and Hospital Shares

Evening Review
Market Summary
Top 20 Biz Stories
Today’s Movers
Market Performance Summary
WSJ Data Center
Sector Performance
ETF Performance
Style Performance
Commodity Futures
S&P 500 Gallery View
Timely Economic Charts
GuruFocus.com
PM Market Call
After-hours Commentary
After-hours Movers
After-hours Real-Time Stock Bid/Ask
After-hours Stock Quote
After-hours Stock Chart
In Play

Stocks Sharply Lower into Final Hour on Tax Hike Worries, Rising Economic Pessimism, Increasing Financial Sector Fear, More Shorting

BOTTOM LINE: The Portfolio is about even into the final hour as losses in my Medical longs, Internet longs and Biotech longs offset gains in my Index hedges and emerging market/commodity shorts. I have not traded today, thus leaving the Portfolio 50% net long. The tone of the market is very negative as the advance/decline line is substantially lower, every sector is declining and volume is above average. Investor anxiety is also above average. Today’s overall market action is very bearish. The VIX is rising 9.64% and is elevated at 50.82. The ISE Sentiment Index is below average at 106.0 and the total put/call is above average at 1.07. Finally, the NYSE Arms has been running above average most of the day, hitting 2.16 at its intraday peak, and is currently 1.51. The Euro Financial Sector Credit Default Swap Index is rising 2.39% today to 152.33 basis points. This index is still below its all-time high of 164.0 on Feb. 24^th. The North American Investment Grade Credit Default Swap Index is rising 2.71% to 229.30 basis points. This index is still well below its Dec. 5^th record high of 285.99. The TED spread is rising 1.48% to 103 basis points. The TED spread is now down 360 basis points since its all-time high of 463 basis points on October 10th. The 2-year swap spread is rising .73% to 69.0 basis points. The Libor-OIS spread is falling .26% to 101.0 basis points. The 10-year TIPS spread, a good gauge of inflation expectations, is falling 5 basis points to .94%, which is down 170 basis points since July 7th. The 10-year TIPS spread bottomed at .65% in October 1998 during the Asian financial crisis and at 1.24% in October 2001 during the technology bubble-bursting meltdown. The 3-month T-Bill is yielding .23%, which is down 1 basis point today. We are finally seeing the type of “get me out at any price” action that usually indicates, at the very least, a tradable bottom is close at hand. However, gauges of investor angst are not quite yet at levels that generally mark a meaningful low. The bearish action in gold is noteworthy given its “safe haven” stature and investors’ current love affair with the precious metal. The US dollar continues to trade very well, but is very near another significant level of resistance. I disagree with those that believe US stocks can’t go up without a meaningful dollar decline. The most cyclical stocks are down the most today, with the MS Cyclical Index dropping 8.11%. I continue to believe these stocks will underperform over the intermediate-term. Stocks that can show relatively healthy growth or just hold their own in this type of economic environment should continue to substantially outperform the major averages. Nikkei futures indicate a -200 open in Japan and DAX futures indicate an -19 open in Germany tomorrow. I expect US stocks to trade mixed-to-lower into the close from current levels on rising economic pessimism, more shorting, increasing financial sector pessimism and tax hike worries.

Bear Radar

Style Underperformer:
Mid-cap Growth (-5.54%)

Sector Underperformers:
Coal (-15.15%), Oil Tankers (-10.58%) and HMOs (-10.52%)

Stocks Falling on Unusual Volume:
CLF, HBC, GMXR, MICC, GDP, NIHD, FCX, SU, WFC, PCZ, APA, WGOV, AMED, PSYS, NUVA, LHCG, IPCM, MICC, ANSS, DECK, LECO, WMGI, KYE, TOO, IEV, KSP and EVR

Stocks With Unusual Put Option Activity:
1) HBC 2) HST 3) EXPD 4) SU 5) MRO

Bull Radar

Style Outperformer:
Large-cap Growth (-1.70%)

Sector Outperformers:
Utilities (-.51%), Software (-.64%) and Computer Hardware (-.98%)

Stocks Rising on Unusual Volume:
SNE, IOC, NTT, DCM, ATHN, APSG, TWGP, FGXI, FCN and WTM

Stocks With Unusual Call Option Activity:
1) HOLX 2) ARO 3) VRTX 4) MRVL 5) MHS

Links of Interest

Market Snapshot Commentary
Market Performance Summary
Style Performance
Sector Performance
WSJ Data Center
Top 20 Biz Stories
IBD Breaking News
Movers & Shakers
Upgrades/Downgrades
In Play
NYSE Unusual Volume
NASDAQ Unusual Volume
Hot Spots
Option Dragon
NASDAQ 100 Heatmap
Chart Toppers
Real-Time Intraday Quote/Chart
HFR Global Hedge Fund Indices