Bull Radar

Style Outperformer:

• Mid-Cap Value -.31%

Sector Outperformers:

• 1) Gold & Silver +5.68% 2) Foods +.82% 3) Airlines +.66%
  

Stocks Rising on Unusual Volume:

• PAYC, SWN, FLML, XON, PPC, TSM, IBN, GG, HDB, W and KLAC

Stocks With Unusual Call Option Activity:

• 1) MAC 2) GSAT 3) FOXA 4) NEM 5) KRFT
  

Stocks With Most Positive News Mentions:

• 1) NOC 2) LLY 3) CSX 4) GLW 5) PPC
  

Charts:

• ETFs Rising on Unusual Volume 

• Stocks Rising on Unusual Volume

Thursday Watch

Evening Headlines 
Bloomberg: 

• Bank of Russia Picks New Monetary Policy Chief as Ruble Plunges. Russia’s central bank replaced its head of monetary policy after a series of emergency measures failed to contain the ruble’s decline, drawing criticism from President Vladimir Putin. Dmitry Tulin, a former central bank official who also worked at the International Monetary Fund and Deloitte LLP, will take on Ksenia Yudaeva’s role as first deputy governor in charge of monetary policy, the Bank of Russia said in a statement yesterday. Yudaeva, who remains a first deputy to Governor Elvira Nabiullina, will focus on forecasting, strategy and financial stability, she told reporters in Moscow. 

• The New Problem Putin Has as Ruble Rout Eases: Chart of the Day.

• China's Credit Growth Surges; Shadow Banking Stages a Comeback. China’s shadow banking industry staged a comeback in December as equity investors and local governments contributed to a surge in credit, underscoring challenges for a central bank trying to revive growth without exacerbating risks. Aggregate financing was 1.69 trillion yuan ($273 billion), the People’s Bank of China said in Beijing today, topping the 1.2 trillion yuan median estimate in a Bloomberg survey. While new yuan loans missed economists’ forecasts, shadow lending rose to the highest in monthly records that began in 2012. 

• China Regulators Watching Online Loans as Risks Multiply. Rising failures in China’s peer-to-peer lending industry may pressure authorities to regulate a segment of Internet finance that almost quadrupled in size last year. The number of platforms that went bankrupt or had difficulty repaying money climbed to 275 in 2014 from 76 a year earlier, according to Yingcan Group, which tracks China’s more than 1,500 online lending sites. Last month, police started investigating the originator of two Sina Corp. (SINA) wealth products for illegal fundraising. 

• China Adds 3.5 Million Investors as Funds Exit: Chart of the Day. Chinese brokerages welcomed more individual investors the past six weeks than any similar period in seven years. Those 3.5 million new customers are being greeted by some fund managers on the way to the exits.

• India Cuts Rates in Unscheduled Move After Inflation Drop. Reserve Bank of India Governor Raghuram Rajan unexpectedly cut interest rates to help revive growth in Asia’s third-largest economy after a slide in the inflation rate. In an unscheduled review, Rajan lowered the benchmark repurchase rate to 7.75 percent from 8 percent, he said in a statement today, the first reduction since May 2013. 

• Bank of Korea Cuts 2015 Forecasts for Inflation, Economic Growth. South Korea’s central bank cut its forecasts for consumer prices and economic expansion this year following a policy meeting at which it kept the benchmark interest rate unchanged at a record low. Inflation will slow to 1.9 percent, from a previous estimate of 2.4 percent, Governor Lee Ju Yeol said today after the bank held the seven-day repurchase rate at 2 percent. Gross domestic product growth is expected to ease to 3.4 percent, compared with an earlier projection of 3.9 percent.

• Most Asian Stocks Advance as Japan Rebound Outweighs U.S. Sales. Most Asian stocks rose as a rebound by Japanese energy companies and exporters outweighed disappointing U.S. retail sales. About two shares rose for each that fell on the MSCI Asia Pacific Index (MXAP), which lost 0.1 percent to 137.35 as of 9:16 a.m. in Tokyo, before markets opened in China and Hong Kong.

• U.S. Output Gains Bolster Concern Over Oil Glut Sending Prices Back Down. Oil resumed its decline after the biggest gain since June 2012 as U.S. crude production increased, bolstering speculation a global supply glut that spurred last year’s price collapse may persist. Futures dropped as much as 0.9 percent in New York. U.S. output surged to 9.19 million barrels a day last week, the fastest pace in weekly records dating back to January 1983, the Energy Information Administration reported yesterday. Crude may fall below a six-month forecast of $39 a barrel and rallies could be thwarted by the speed at which lost shale production can recover, according to Goldman Sachs Group Inc.

• U.S. Oil Output Will Grow Even When Rigs Are Idle: Chart. “We are still riding the wave of the drilling activity that took place when prices were higher,” said Michael Cohen, an analyst at Barclays Plc in New York. Oil production may grow even as the rig count falls due to “the rapid productivity gains in many different places,” he said. 

• Nowhere to Hide for Miners as Copper Joins Commodity Rout. Copper’s plunge is leaving the world’s largest mining companies with nowhere left to hide from the rout engulfing commodities and increasing pressure on them to cut spending and dividends. Copper fell as much as 8.7 percent yesterday in London, triggering a selloff in mining equities including BHP Billiton Ltd. (BHP), Glencore Plc (GLEN) and Rio Tinto Plc. (RIO) The metal is down 12 percent on the London Metal Exchange this year amid concern about a slowdown in China, the biggest consumer of metals.

• Iron Ore Forecasts Cut by UBS on Supply Growth and Oil Rout. Iron ore will extend losses as the biggest producers expand low-cost supply and demand growth stays weak, according to UBS Group AG, which cut price forecasts and listed the commodity as its least-favored metal. Miners’ shares fell, with Fortescue Metals Group Ltd. (FMG) down 17 percent this week. Cheaper energy prices are lowering the cost of mining and shipping metals including iron ore, according to the bank, which forecast a rising global glut. The raw material will average $66 a metric ton this year, 22 percent less than previously forecast, and $65 in 2016, down 21 percent, it said. Surging low-cost supplies from BHP Billiton Ltd. (BHP), Rio Tinto Group and Vale SA are outpacing demand growth in China, spurring a 47 percent plunge in prices last year. UBS’s price-forecast cuts follow similar reductions yesterday from Citigroup Inc., which cited rising supplies and cheaper oil. Among projects set to start output this year amid the bear market is the A$10 billion ($8.2 billion) Roy Hill mine in Australia’s Pilbara.

• Global Gold Demand Seen Rising 15% by HSBC on Asia-to-ETP Buying. Gold demand will rebound in 2015 as bullion consumption in Asia increases and investors return to exchange-traded products backed by the metal, according to HSBC Securities (USA) Inc. Global demand may rise 15 percent to 4,127 metric tons this year, analysts James Steel and Howard Wen wrote in a report dated Jan. 14. Consumption reached a record 4,582.3 tons in 2011, when prices climbed to a peak of $1,921.17 an ounce, according to data from the World Gold Council.

Wall Street Journal: 

• Months of Airstrikes Fail to Slow Islamic State in Syria. Militant Group Has Gained Territory Despite U.S.-Led Strikes, Raising Concerns of the Obama Administration’s Mideast Strategy. More than three months of U.S. airstrikes in Syria have failed to prevent Islamic State militants from expanding their control in that country, according to U.S. and independent assessments, raising new concerns about President Barack Obama’s military strategy in the Middle East. 

• French Jews Face Hate They Left Africa to Escape. France Was Supposed to Be a Safe Haven for Jews Fleeing North Africa Decades Ago. 

• RadioShack Prepares Bankruptcy Filing. Struggling Electronics Chain, in Talks with Lenders, Could File as Soon as Next Month. RadioShack Corp. is preparing to file for bankruptcy protection as early as next month, people familiar with the matter said, following a sputtering turnaround effort that left the electronics chain short on cash.

• Apache(APA) to Lay Off Roughly 5% of Staff. Houston Energy Company to Lay Off As Many As 250 This Week.

• Why We’re Losing to Radical Islam. Fourteen years after 9/11, we still lack a strategy. Congress should lead with hearings on the enemy and how to prevail.

Fox News:

• Fox News Poll: Voters want Obama to sign bill approving Keystone pipeline.

• Lawmakers urge new US strategy as Boko Haram rampages through Africa. (video) One of the most brutal and murderous Islamist militant groups has been steadily gaining ground, inflicting a streak of atrocities shocking by even their standards -- and it's not Al Qaeda or the Islamic State.

MarketWatch.com:

• How to defend your money from the emerging bear market. Another trading day, another bout of volatile stock market action. Yet most investors nowadays aren’t too concerned about the market. This is what happens at market tops. Skeptics are ridiculed as “naysayers,” “permabears” or “doom-and-gloomers.” As the bull market goes higher, many investors think that maybe it really is different this time. Maybe central banks have the power to keep markets levitated indefinitely. Meanwhile, the bubble gets bigger and bigger, until complacent investors accept the bubble as the “new norm.” Nowadays, uber-bulls believe this market is unstoppable, while some experts have made predictions of Dow 20,000 in 2015.

Zero Hedge: 

• Surprise!! Japanese Stocks Surge After Machinery Orders Crash 14.6% - Worst In 5 Years. (graph)

• Markets Turmoiled But Crude 'Buying Panic' Lifted Stocks "Off The Lows". (graph)

• Skyscraper Index Goes Global. (graph)

• Lottery Sales Are Collapsing. (graph)

• What Happens To High-Wage Jobs Next? (graph)

• The Last 3 Times This Happened, The US Was In Recession. (graph)

• 2014's "Robust" Jobs Market Produced No Wages, And Now No Spending. (graph)

• Russia Cuts Off Ukraine Gas Supply To 6 European Countries.

• Goldman Sachs(GS) Warn Oil Prices May "Undershoot" $39. (graph)

Business Insider:

• The End Of OPEC As We Have Known It Is Here.

• Al Qaeda Is Back In A Big Way.

• BAML: Dr. Copper Is Shouting 'Sell' Chinese Stocks. (graph)

• FBI Arrests Ohio Man For Allegedly Plotting ISIS-Style Attack On Capitol.

• Saudi Arabia Is Building A 600-Mile 'Great Wall' To Shield Itself From ISIS.

Reuters: 

• Carlos Slim becomes NY Times(NYT) largest shareholder. New York Times Co said Mexican billionaire Carlos Slim has increased his stake to 16.8 percent, becoming the largest shareholder of the company. 

• Rural India slowdown threatens Modi's promise of "better days". Sugarcane grower Nilesh Kadam has abandoned plans to buy a tractor. He doesn't have enough money, like many Indian farmers hit by erratic weather and sliding prices for the cotton, soybean and rubber they produce. 

• Nasdaq(NDAQ) plans challenge to CME(CME) and ICE(ICE) in energy derivatives. Exchange operator Nasdaq OMX Group is considering entering the energy derivatives market in a challenge to CME Group and Intercontinental Exchange Inc, according to documents seen by Reuters.

Telegraph: 

• Europe's imperial court is a threat to all our democracies. The European Court of Justice has this time departed a long way from the rule of the law, even by its own elastic standards. The European Court of Justice has declared legal supremacy over the sovereign state of Germany, and therefore of Britain, France, Denmark and Poland as well. The ECJ's advocate-general has not only brushed aside the careful findings of the German constitutional court on a matter of highest importance, he has gone so far as to claim that Germany is obliged to submit to the final decision. "We cannot possibly accept this and they know it," said one German jurist close to the case.

Handelsblatt:

• German Politician Sees Conflict Over EU Court Bond Ruling. Klaus-Peter Willsch, economics adviser for Germany's CSU/CDU parliamentary faction, says European Court of Justice ruling on European Central Bank's bond-buying plan may provoke a legal conflict with the Federal Constitutional Court, citing interview. The Karlsruhe-based constitutional court designated the OMT program as incompatible with existing law and the European court ruling can't simply wipe away those concerns. Two institutions heading into a legal conflict unless the ECJ plausibly explains why their ruling isn't contrary to European law. Says a rift has opened up in Europe over the ECB's crisis management strategy. ECB monetary, financial and economic policies have become entangled in a Gordian knot.

Bild:

• German Industry Official Warns of 'Artificial' Inflation. Martin Wansleben, managing director of the DIHK national industry and trade chambers, says that low inflation in 2014 and decline in oil prices will result in a real wage gain of EU5b. European Central Bank's bond purchase program will lead to contrived rise in inflation rates. ECB needs to be cautious about increasing inflation at any cost, he said.

Evening Recommendations 

• None of note

Night Trading

• Asian equity indices are -.25% to +1.0% on average.

• Asia Ex-Japan Investment Grade CDS Index 118.5 -.5 basis point.

• Asia Pacific Sovereign CDS Index 75.75 unch.

• S&P 500 futures +.05%.

• NASDAQ 100 futures  +.08%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (BLK)/4.68

• (LEN)/.96

• (FAST)/.40

• (BAC)/.31

• (C)/.09

• (PPG)/1.99

• (INTC)/.66

• (SLB)/1.46

Economic Releases
8:30 am EST

• Empire Manufacturing for January is estimated to rise to 5.0 versus -3.58 in December.

• PPI Final Demand for December is estimated to fall -.4% versus a -.2% decline in November.

• PPI Ex Food & Energy for December is estimated to rise +.1% versus unch. in November. 

• Initial Jobless Claims are estimated to fall to 290K versus 294K the prior week.

• Continuing Claims are estimated to fall to 2400K versus 2452K prior.

10:00 am EST

• Philly Fed Business Outlook Index for January is estimated to fall to 18.7 versus 24.5 in December. 

Upcoming Splits

• None of note

Other Potential Market Movers

• The China FDI report, weekly EIA natural gas inventory report, Bloomberg US Economic Survey for January, weekly Bloomberg Consumer Comfort Index and (BBY) holiday results could also impact trading today.

BOTTOM LINE: Asian indices are mostly higher, boosted by real estate and industrial shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the day.

Stocks Falling into Final Hour on Escalating Global Growth Fears, Rising US High-Yield Debt Angst, Earnings Worries, Metals&Mining/Financial Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Around Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 22.52 +9.53%

• Euro/Yen Carry Return Index 144.34 -.48%

• Emerging Markets Currency Volatility(VXY) 10.38 -.29%

• S&P 500 Implied Correlation 66.67 -.61%

• ISE Sentiment Index 89.0 +20.27%

• Total Put/Call 1.15 +29.21%

• NYSE Arms 1.99 +33.57% 

Credit Investor Angst:

• North American Investment Grade CDS Index 72.19 +.97%

• America Energy Sector High-Yield CDS Index 751.0 +2.53%

• European Financial Sector CDS Index 67.72 +.22%

• Western Europe Sovereign Debt CDS Index 27.57 -1.04%

• Asia Pacific Sovereign Debt CDS Index 75.81 +.12%

• Emerging Market CDS Index 388.65 -1.06%

• China Blended Corporate Spread Index 371.05 +1.64%

• 2-Year Swap Spread 22.75 unch.

• TED Spread 23.25 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -14.75 +.5 basis point

Economic Gauges:

• 3-Month T-Bill Yield .03% unch.

• Yield Curve 135.0 -1.0 basis point

• China Import Iron Ore Spot $68.30/Metric Tonne -.64%

• Citi US Economic Surprise Index 19.0 -12.0 points

• Citi Eurozone Economic Surprise Index -.2 -.4 point

• Citi Emerging Markets Economic Surprise Index -13.70 +.5 point

• 10-Year TIPS Spread 1.57 +4.0 basis points

Overseas Futures:

• Nikkei Futures: Indicating -10 open in Japan

• DAX Futures: Indicating +35 open in Germany

Portfolio: 

• Slightly Higher: On gains in my biotech sector longs, index hedges and emerging markets shorts

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

• Market Exposure: Moved to 50% Net Long

Today's Headlines

Bloomberg:

• Oil Leading Putin Back to Debt as 20% Yields Seen: Russia Credit. The days when Russia could comfortably cancel weekly bond auctions are coming to an end as crude oil tumbles toward $40 a barrel. While the Finance Ministry scrapped the first sale of the year yesterday, citing “unfavorable market conditions,” the government will eventually need to start selling short-dated debt at yields as high as 20 percent if crude prices stay depressed, according to Raiffeisen Capital. The rate on five- year ruble notes surged 2.22 percentage points this month, the most in emerging markets, as oil slumped to the lowest since 2009. The surge in Russian borrowing costs -- the result of the plunging ruble, sanctions over Ukraine and plummeting oil -- prompted the ministry to pull four auctions in December alone. With the economy verging on a recession amid a stand-off over President Vladimir Putin’s actions in Crimea and east Ukraine, the budget deficit will increase to 3 percent of gross domestic product this year, Finance Ministry data show. “Russia’s key source of income is shrinking,” Oleg Popov, a money manager at Allianz Investments in Moscow, said by phone yesterday. “The government will be forced to borrow.”

• Ruble Falls Fourth Day on Oil as Russia Says Junk Rating Likely. The ruble weakened for a fourth day as Russia’s economy minister acknowledged the government risks losing its investment-grade rating amid a slump in oil that is tipping the economy into a recession. The currency lost 1.3 percent to 66.1170 per dollar by 6:32 p.m. in Moscow, bringing its four-day decline to 8.8 percent. The ruble trimmed a drop of as much as 2 percent after Finance Minister Anton Siluanov said Russia could convert as much as 500 billion rubles ($7.58 billion) of its $88 billion rainy-day Reserve Fund to support the currency, which he called “undervalued.” 

• Freeport Leads Plunge in Mining Stocks After Copper Slump. (video) Freeport-McMoRan Inc. (FCX), the largest publicly traded copper producer, and other suppliers of the metal plunged after the metal fell the most in six years. Freeport declined 9.5 percent to $19:05 at 9:51 a.m. in New York and traded at the lowest since April 2009. Glencore Plc (GLEN), the third-biggest producer, dropped 12 percent in London and First Quantum Minerals Ltd. slid 27 percent in Toronto. 

• Crude Oil Futures Gain on Speculation Losses Excessive. Crude oil advanced from the lowest level in more than 5 1/2 years on speculation that futures prices fell more than justified. Oil rebounded as much as 6.2 percent in New York and 5.1 percent in London. The market shrugged off an Energy Information Administration report that showed U.S. crude and fuel stockpiles increased last week. 

• European Stocks Fall as Drop in Miners, Oil Shares Outweigh ECB. European stocks fell from a five-week high as energy and mining shares followed commodity prices lower on global-growth concern. The Stoxx Europe 600 Index dropped 1.5 percent to 339.67 at the close of trading.

• Treasury Bond Yield Drops to Record Low Amid Fear of Global Deflation. Treasury 30-year bonds yields are tumbling to record lows as the collapse in oil and commodity prices fuels speculation the global economy may drop into a deflationary spiral and stifle growth. Global sovereign yields fell to records in the U.K., France, Canada and Japan as a report showed retail sales in the U.S. slumped in December by the most in almost a year, reflecting a broad-based retreat that may prompt economists to cut growth forecasts. The slide prompted traders to push back expectations for the timing of the first Federal Reserve interest-rate increase into December less than a month after speculating that rates could rise as soon as April. 

• Fed Saw Consumer Spending Rise Amid Concern on Lower Oil Prices. A Federal Reserve survey showed most regions saw “modest” or “moderate” economic growth driven by gains in consumer spending, while the energy-rich Dallas district slowed as oil prices plunged. “Consumer spending increased in most districts, with generally modest year-over-year gains in retail sales,” the Fed said today in its Beige Book, based on reports from its 12 districts gathered on or before Jan. 5. “Auto sales showed moderate to strong growth.” 

• Goldman Cuts Profit Estimates for Chemical Makers on Oil. Goldman Sachs Group Inc. cut earnings estimates at seven U.S. chemical makers to reflect a stronger dollar and product prices that are falling with crude oil.

• Mortgage-Bond Slump Builds After Worst Start to Year Since 1997. Government-backed U.S. mortgage bonds are off to their worst start relative to Treasuries since at least 1997 as investors in the $5.5 trillion market brace for a surge in homeowner refinancing. Returns on mortgage securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae were 0.6 percentage point less than those on similar-duration government debt this month through yesterday, according to Bank of America Merrill Lynch index data. Ginnie Mae securities, which package Federal Housing Administration loans, have underperformed Treasuries by 0.9 percentage point.

• Obama Sets Plan to Cut Methane Leaks From Oil, Gas Industry. The Obama administration said it plans to require the oil and gas industry to cut methane emissions by as much as 45 percent over the next decade, the president’s latest step to curb greenhouse gases tied to climate change. The U.S. Environmental Protection Agency will issue rules this year targeting new production and transmission systems to reduce methane leaks by 40 percent to 45 percent by 2025, the administration said Wednesday. The EPA also will expand voluntary programs with states and industry on equipment already in use, a step that falls short of what environmentalists sought. 

• JPMorgan(JPM) CEO Dimon Says Banks ‘Under Assault’ by U.S. Regulators. Jamie Dimon, grappling with multibillion-dollar legal costs and rising capital requirements at JPMorgan Chase & Co. (JPM), lashed out at U.S. regulators for putting his bank “under assault.” “We have five or six regulators or people coming after us on every different issue,” Dimon, 58, said today on a call with reporters after New York-based JPMorgan reported fourth-quarter results. “It’s a hard thing to deal with.”

Wall Street Journal:

• In a Record Year for Skyscrapers, China is Miles Above Everyone Else. In China, polluted skies aren’t the limit – at least for skyscrapers. The world built a record 97 buildings that were 200 meters (656 feet) or taller in 2014, and for the seventh year in a row, the Middle Kingdom completed the greatest number of them, according to a new report (pdf) from the U.S.-based Council on Tall Buildings and Urban Habitat. China’s output of 58 skyscrapers was a 61% increase from its previous record of 36 buildings in 2013, according to the report. Tianjin, the eastern sister city of Beijing, completed the most 200-meter-plus skyscrapers, totaling six. That’s more than all such skyscrapers built in the Philippines, the world’s No. 2 builder behind China with five. Within China, there was a four-way tie for second place between Chongqing, Wuhan and Wuxi, all with four buildings each. If you were to stack all of China’s new skyscrapers on top of each other, they would reach 13,548 meters (44,449 feet) into the sky — close to the upper altitude limit for most commercial airliners. The Philippines, meanwhile, built a total of 1,143 meters’ worth of skyscrapers. Asia dominated sky-high construction in 2014, with 76% of all 200-meter-plus buildings being completed in the East. The United Arab Emirates and Qatar tied for third after China and the Philippines.

ZeroHedge: 

• OPEC Who? US Crude Oil Production Hits Record High. (graph)

• The Dead Mortgage Cat Bounce Is Over. (graph)

• Dear Jamie Dimon: This Is Why US Banks Are "Under Assault".

• 5 Key Takeaways From The ECJ's Kinda Sorta 'Thumbs Up' To Draghi.

• Crude Crumbles On Unexpectedly Large Inventory Build. (graph)

• Forget Commodities, There's Another 'C' Word Flashing Red For Stocks. (graph)

• Dow Drops 600 Points In 24 Hours As 30Y Yield Crashes To Record Low. (graph)

• US Retail Sales Drop Most Since June 2012 (And Don't Blame Gas Prices). (graph)

Business Insider:

• Russia Is Constructing An Arctic Stronghold 30 Miles From The Finnish Border.

• Here Are The Countries Feeling The Pain Of The Copper Crash.

• Charlie Hebdo Is Printing 2 Million More Copies Of Its New Issue After It Sold Out In Minutes.

• Russian Bank Chair: 'The Entire Economy Will Be Under Control Of The State'.

• If The Stock Market Closes Higher This Year, It'll Do Something It's Never Done Before.

• Commodity Prices Just Crashed To A 12-Year Low. (graph)

• Russian Economy Minister Cites Lenin Saying 'The Era Of Peace Is Over'.

The Bakken: 

• Breakeven targets, future ND production in low oil price reality. According to the DMR, breakeven price points—the price at which new drilling would cease—vary across the Williston Basin. With McKenzie county being in the heart of the Bakken, new drilling wouldn’t cease until oil prices dropped to $30 per barrel. Counties that are on the outer-edge of the Bakken—such as McLean and Divide—will be the first to discontinue drilling new wells with breakeven prices at $77 and $73 per barrel, respectively. The price at which production from existing wells would be shut-in occurs when the oil prices drop to $15 per barrel. Production projections show that as the oil prices decrease, the number of rigs will too. But, the review showed that by the third quarter of 2015, if oil prices reach $25 per barrel, the state’s bopd will still be around the 1 million bopd mark. If oil prices were to reach $25 per day by the third quarter of 2016, the state would still be able to produce 800,000 bopd, and 700,000 bopd by third quarter 2017. To view the presentation in its entirety, click here.

MNI:

• ECB Governing Council member Ignazio Vasco says in interview with MNI that "there is a macroeconomic risk that we may get to a downward spiral of stagnation and low inflation, or outright deflation."

Bear Radar

Style Underperformer:

• Large-Cap Value -1.81%

Sector Underperformers:

• 1) Steel -5.55% 2) Banks -3.51% 3) Energy -3.01%

Stocks Falling on Unusual Volume:

• FLML, NEWM, BAP, SCCO, IOC, ANFI, FCX, CFR, FXCM, CVRR, BWA, ALTR, PRGS, FNGN, IHS, SJR, SWN, ERJ, WBAI, AA, AXDX, SNDK, JPM, FLS, MDLY, ALLY, SEM, C, TMHC, SCHW, FL, HFC, PSX, AWI, TSLA, NEWM, VIAB and EVEP

Stocks With Unusual Put Option Activity:

• 1) XLB 2) XHB 3) FCX 4) HOG 5) KRE

Stocks With Most Negative News Mentions:

• 1) PBR 2) KBH 3) FFIV 4) TSLA 5) JPM
  

Charts:

• ETFs Falling on Unusual Volume

• Stocks Falling on Unusual Volume

Bull Radar

Style Outperformer:

• Small-Cap Growth -.65%

Sector Outperformers:

• 1) REITs -.01% 2) Biotech -.03% 3) Utilities -.12%
  

Stocks Rising on Unusual Volume:

• SEMI, SRNE, HLSS, ADVS, XON, ZLTQ, GME and FCE/A

Stocks With Unusual Call Option Activity:

• 1) ZIOP 2) SGMS 3) WY 4) EXAS 5) VNDA
  

Stocks With Most Positive News Mentions:

• 1) IDXX 2) BEBE 3) CSX 4) AXL 5) MRCY
  

Charts:

• ETFs Rising on Unusual Volume 

• Stocks Rising on Unusual Volume