Bull Radar

Style Outperformer:

• Mid-Cap Value +.07%

Sector Outperformers:

• 1) Hospitals +1.87% 2) Agriculture +1.94% 3) Restaurants +.78%
  

Stocks Rising on Unusual Volume:

• FINL, WGO, CMC and NKE

Stocks With Unusual Call Option Activity:

• 1) DHR 2) SE 3) NKE 4) NTCT 5) MU
  

Stocks With Most Positive News Mentions:

• 1) CYH 2) RH 3) NKE 4) THC 5) LLY
  

Charts:

• ETFs Rising on Unusual Volume 

• Stocks Rising on Unusual Volume

Morning Market Internals

NYSE Composite Index:

• Volume Running 8.7% Below 100-day average
• 6 Sectors Rising, 4 Sectors Declining
• 45.3% of Issues Advancing, 51.7% Declining
• 65 New 52-Week Highs, 140 New Lows
• 49.3% of Issues Above 200-day Moving Average
• Average 14-Day RSI 42.0
• Vix 14.0
• Total Put/Call 1.11
• TRIN/Arms .89

Friday Watch

Evening Headlines 

Bloomberg: 

• Merkel Says Weekend Talks on Greece ‘Decisive’ as Time Runs Out. German Chancellor Angela Merkel and her fellow European Union leaders told their finance ministers to unblock Greece talks once and for all as positions hardened around conditions the country must meet to secure aid. In the rundown to the June 30 expiry of Greece’s euro-area bailout, hopes were raised -- then dashed -- by Prime Minister Alexis Tsipras, who came to Brussels with a set of proposals only to push back when more cuts were demanded. With Greece’s stay in the euro at stake, negotiations have picked up in frequency as a breakthrough has proved elusive.

• Draghi Stimulus Proves Painful for Bondholders Now Facing Losses. Record-low yields drew Berkshire Hathaway Inc., BlackRock Inc. and overseas borrowers to Europe’s bond market in their droves. The trend hasn’t worked well for investors who are suffering their worst losses in nine years.

• Russia’s ‘Saber-Rattling’ Threatens Stability, U.S. Says. Six years after then-Secretary of State Hillary Clinton said the Obama administration wanted to “reset” relations with Russia, the temperature is falling instead of rising. It hasn’t plunged to Cold War levels, but despite cooperation in fighting terrorism and seeking to curb Iran’s nuclear program, relations between Russia and the NATO alliance have been deteriorating steadily, and concern over further Russian moves against Ukraine and other neighboring European states has grown steadily. 

• Chinese Stock Plunge Leaves State Media Speechless. In a front-page commentary on Tuesday, the China Securities Journal said the nation’s “liquidity bull market” was “taking a break.” Future gains would be “slow” and driven by government efforts to reform state-owned companies, the paper said, echoing an earlier article by the state-run Securities Times. The takeaway is that authorities are trying to discourage speculative bets on the highest-flying stocks, Yan said. Instead, the government wants to steer money toward state-run companies, which tend to trade at lower valuations.

• Morgan Stanley Says Don’t Buy the Dip as China Stock Rally Peaks. Morgan Stanley is calling the top of China’s stock rally. The brokerage predicts the Shanghai Composite Index will fall between 2 percent and 30 percent over the next 12 months, according to Jonathan Garner, Morgan Stanley’s chief Asia and emerging market strategist. The Shanghai Composite declined 2.7 percent at 9:48 a.m. to its lowest level in five weeks, while the ChiNext gauge of smaller companies fell more than 20 percent in Shenzhen from its June 3 record.

• Shanghai Volatility Spreads to U.S. as ETF Erases Gains for June. The largest U.S. exchange-traded fund tracking mainland Chinese stocks erased its gain for the month amid the widest price swings since January on concern the rally that pushed shares to a seven-year high is fading. The Deutsche X-trackers Harvest CSI 300 China A-Shares ETF slumped 5.1 percent to $47.81 on Thursday, putting it on track for the first monthly drop since January. The fund’s 30-day historical volatility climbed to 47 percent. The selloff followed another erratic session on the Shanghai Stock Exchange after traders sold shares purchased with borrowed money for a third day. 

• China’s Stocks Tumble to Five-Week Lows as Margin Debt Declines. Chinese stocks fell to a five-week low after traders sold shares purchased with borrowed money for a fourth day and concern grew valuations are too high relative to earnings growth. Technology and industrial companies, the best performers over the past six months, led declines. East Money Information Co. plunged by the 10 percent daily limit, while China Shipbuilding Industry Co. dropped 5.8 percent. Guotai Junan Securities, China’s largest brokerage by revenue, jumped 44 percent in its debut in Shanghai after the nation’s biggest domestic initial share sale since 2010. The Shanghai Composite Index tumbled 2.7 percent to 4,404.16 at 9:35 a.m., erasing this week’s gain and sending it toward the steepest monthly loss since January 2014. 

• Asian Stocks Fall to Pare Weekly Gain as Investors Weigh Greece. Asian stocks fell, trimming the regional benchmark index’s weekly advance, as investors weighed prospects for Greece after days of talks failed to yield a breakthrough in its debt crisis. The MSCI Asia Pacific Index lost 0.2 percent to 149.02 as of 9:02 a.m. in Tokyo, paring this week’s gain to 1.3 percent.

• Never Mind Greece, Euro Seen Driven Toward Parity by ECB Policy. (graph) If Greece is forced to default, sell the euro. If Greece reaches a deal with its creditors, sell the euro. That’s the message from strategists including Barclays Plc and Bank of Tokyo-Mitsubishi UFJ Ltd., who say what matters for the currency is the European Central Bank’s bond purchases.

• Treasuries Set for Weekly Drop as Focus Moves to Fed From Greece. Treasuries headed for their first weekly decline in three weeks as investors shifted their attention from Greece to the U.S. economy. Benchmark 10-year yields are about 10 basis points from the highest since October after a report Thursday showed consumer spending rose the most in almost six years in May, even as talks between Greece and its creditors ended without agreement. Federal Reserve policy makers have stressed the timing of the first interest-rate rise since 2006 will depend on data, which a Bloomberg gauge shows are the strongest relative to economist estimates in almost four months.

• Micron(MU) sales outlook disappoints as PC slump continues. Micron Technology, the biggest U.S. maker of memory chips, issued a fiscal fourth-quarter sales forecast that fell short of analysts' estimates on weaker demand for personal-computer components. Revenue for the period ending in August will be $3.45 billion to $3.7 billion, the Boise, Idaho-based company said in a presentation posted on its website. Analysts on average were projecting sales of $4.16 billion, according to data compiled by Bloomberg.

Wall Street Journal: 

• Islamic State Attacks Two Syrian Kurdish Areas. Group’s first major foray into Kobani after being routed out in January by Kurdish militias. Islamic State militants attacked two Syrian Kurdish areas in an apparent warning to Kurdish militia fighters and their allies as they advance toward the extremist group’s stronghold of Raqqa.

• Unanswered Health Law Question: So Why Was It Written that Way? Words ‘established by the State’ formed the basis of the unsuccessful Supreme Court challenge.

• The Political John Roberts. The Chief Justice again rewrites ObamaCare in order to save it. For the second time in three years, Chief Justice John Roberts has rewritten the Affordable Care Act in order to save it. Beyond its implications for health care, the Court’s 6-3 ruling in King v. Burwell is a landmark that betrays the Chief’s vow to be “an umpire,” not a legislator in robes. He stands revealed as a most political Justice. The black-letter language of ObamaCare limits insurance subsidies to “an Exchange established by the State.” But the Democrats who wrote the bill in 2010 never imagined...

Fox News:

• US intel chief calls Iran the leading terror sponsor, as nuke talks enter final phase. (video) The nation’s top intelligence official labeled Iran the leading state sponsor of terrorism and called the regime -- and its proxy Hezbollah -- the single most important factors keeping Syrian dictator Bashar Assad in power, according to a letter obtained by Fox News. The warning comes as Obama administration officials enter the final phase of nuclear negotiation with Tehran. But despite the diplomatic track, Director of National Intelligence James Clapper assailed the country’s role in destabilizing the region in the letter to Republican senators.

• Scalia leads scathing dissent on ObamaCare ruling, dubs law 'SCOTUScare'. (video) Supreme Court Justice Antonin Scalia and his conservative colleagues may have been overruled in Thursday's decision upholding ObamaCare subsidies, but they didn't go down without a fight.

MarketWatch.com: 

• Obamacare tax increases are now locked in at least through 2016.

CNBC:

• Nike(NKE) earnings swoosh past estimates; shares rise. Nike delivered quarterly earnings and revenue that topped analysts' expectations on Thursday. The sports apparel retailer posted fiscal fourth-quarter earnings of 98 cents per share and $7.78 billion in revenue. Wall Street had forecast that the company would report 83 cents a share on $7.69 billion in revenue, according to a consensus estimate from Thomson Reuters.

Zero Hedge: 

• 18 Years Ago This Country Collapsed Almost Overnight. Is This Time Different?

• For The First Time Ever, QE Has Officially Failed.

• IRS Deleted Backups Of 24,000 Lois Lerner Emails Months After Subpoena.

• There's Something Wrong With The World Today (Hint: 1995). (graph)

• Stocks Give Up "Greece Doesn't Matter" Gains; Oil Drops, VIX Pops. (graph)

• Is This The Chart That Scared Yellen Capital Out Of Biotechs? (graph)

• 3 Things: Trend, Ceiling & Rates. (graph)

• The Biggest Threat To Chinese Stocks: "Shadow Lending" Crackdown. (graph)

• The Simple Reason Why China's Stratospheric Stock Market Rally Can't Fuel Economic Growth. (graph)

Business Insider: 

• The Silicon Valley housing crisis is epitomized in this listing for a $899/month tent.

• The State Department says that it has 15 Benghazi emails that Clinton didn't hand over.

Telegraph: 

• Greece talks to go down to the wire amid fears of imminent banking collapse. Talks will spill over into the weekend as Angela Merkel tells Alexis Tsipras to "shut up" and vows not to submit to Athens' 'blackmail'.

• EU summit: Greek talks collapse while Cameron's renegotiation ploy stutters. Second European finance ministers meeting breaks down in space of 24 hours as both sides fail to thrash out differences, with another meeting planned for Saturday.

Australian Financial Review:

• HSBC dumps China PMI as Beijing tightens information flows. For those on wanting to understand China there is one economic statistic more closely watched than any other. It's the Flash Purchasing Managers Index - or PMI - which is released in the last week of every month. The index claims to be the "earliest available indicator" of activity in China's giant manufacturing sector and it moves markets from Shanghai to Sydney, while providing a talking point for pundits. For the last five years the index has been sponsored by HSBC, giving the bank an easy stream of publicity and allowing it to brand itself as an authority on the Chinese economy. But HSBC's sponsorship will finish at the end of this month after the bank did not renew its global agreement with the survey's private sector compiler, Markit. The bank will end its sponsorship of all 23 emerging market PMI's produced by Markit. A spokeswoman for HSBC confirmed its exit to AFR Weekend and said the bank would refocus its marketing dollars towards other projects. She denied there was anything more to it than the bank moving on after "five successful years".

Evening Recommendations 

• None of note

Night Trading

• Asian equity indices are -1.25% to +.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 107.5 -1.25 basis points.

• Asia Pacific Sovereign CDS Index 57.50 -.5 basis point.

• S&P 500 futures -.07%.

• NASDAQ 100 futures -.16%.

Morning Preview Links

Earnings of Note

Company/Estimate

• (FINL)/.24

Economic Releases

10:00 am EST

• Final Univ. of Mich. Consumer Sentiment for June is estimated at 94.6 versus a prior estimate of 94.6.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Fed's George speaking, Eurozone M3 Money Supply and the final publishing of the reconstituted Russell indices could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by commodity and finaincial shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower. The Portfolio is 25% net long heading into the day.

Stocks Reversing Lower into Final Hour on Greece Debt Deal Worries, US High-Yield Debt Angst, China Bubble Fears, Transport/Commodity Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 13.97 +5.28%

• Euro/Yen Carry Return Index 144.62 -,23%

• Emerging Markets Currency Volatility(VXY) 8.74 +.34%

• S&P 500 Implied Correlation 61.73 -.71%

• ISE Sentiment Index 103.0 -14.88%

• Total Put/Call 1.0 +13.64%

• NYSE Arms 1.03 -39.15% 

Credit Investor Angst:

• North American Investment Grade CDS Index 66.71 -.44%

• America Energy Sector High-Yield CDS Index 1,072.0 +2.62%

• European Financial Sector CDS Index 77.14 -1.19%

• Western Europe Sovereign Debt CDS Index 22.76 +.44%

• Asia Pacific Sovereign Debt CDS Index 57.32 -1.04%

• Emerging Market CDS Index 301.30 +.05%
  

• iBoxx Offshore RMB China Corporates High Yield Index 120.81 -.01%

• 2-Year Swap Spread 22.75 +1.25 basis points

• TED Spread 27.0 -1.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -19.0 +.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .00% unch.

• Yield Curve 171.0 +1.0 basis point

• China Import Iron Ore Spot $62.19/Metric Tonne -.54%

• Citi US Economic Surprise Index -32.70 +3.2 points

• Citi Eurozone Economic Surprise Index 9.5 -.9 point

• Citi Emerging Markets Economic Surprise Index -20.30 -1.8 points

• 10-Year TIPS Spread 1.93 unch.

Overseas Futures:

• Nikkei 225 Futures: Indicating +18 open in Japan 

• China A50 Futures: Indicating -162 open in China

• DAX Futures: Indicating -28 open in Germany

Portfolio: 

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

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 25% Net Long

Today's Headlines

Bloomberg:

• Hollande Says Greek Deal Possible as Merkel Sees No Progress. (video) French President Francois Hollande held out the prospect of a deal for Greece even as German Chancellor Angela Merkel said negotiations looked to be going backward. The contrast in tone from the heads of Europe’s two biggest economies reflected the frustration among leaders and finance ministers after days of talks in Brussels failed to yield a breakthrough. Finance chiefs will reconvene on Saturday for their fifth session on Greece in just over a week.

• Dueling Greece Plans Confound Race for Bailout Deal. (video) Euro-area finance ministers expressed bemusement on the status of talks with Greece after they were presented at the last minute with competing proposals aimed at resolving the standoff over aid. Greece’s creditors pulled together a common position that doesn’t have the support of the Greek government and sent it to finance chiefs to review as the basis for a deal, said Jeroen Dijsselbloem, the Dutch finance minister who chairs meetings of his euro-area counterparts. A Greek government official said that Greece had submitted its own proposals.

• More ‘Tantrums’ Likely as Fed Tightens, India’s Rajan Says. Indian central bank Governor Raghuram Rajan warned of more volatility in global financial markets on par with the so-called “taper tantrum” in 2013 that sent the rupee in a tailspin. “With the back-to-back quantitative easing stimulus programs by other major central banks, alongside possible tightening by Fed, what we have seen might be only one of a series of ‘tantrums’ that the global financial markets are likely to witness,” Rajan wrote in a forward to the Financial Stability Report published by the Reserve Bank of India.

• Brazil Real, Stocks Sink on Legal Petition to Avert Lula Arrest. Brazilian stocks and the real sank after a news report that a legal measure was filed to prevent former President Luiz Inacio Lula da Silva from being arrested amid Brazil’s largest graft probe. The Ibovespa led losses in the Americas and the currency reversed earlier gains after Folha de S. Paulo newspaper reported a so-called habeas corpus request was filed on behalf of Lula. The legal maneuver would allow detainees to seek relief from unlawful imprisonment. Lula hasn’t taken any such legal action, according to a spokesman for his institute. “That’s all adding to the political instability environment we’re living in Brazil these days,” Raphael Figueredo, an analyst at the brokerage firm Clear Corretora, said by message. “As investors saw this, they ran to look for protection. That’s why the Ibovespa and the real plunged.” The benchmark gauge slumped 1.6 percent to 52,9755.62 at 12:29 p.m. in Sao Paulo. The real slid 0.6 percent to 3.117 per dollar.

• China Goes on a $46 Billion Aussie Home Spending Spree. Surging Chinese demand for Australian homes is dwarfing efforts to root out illegal buyers as the government struggles to avert a backlash against unaffordable housing. Since announcing a crackdown on unlawful home purchases in February, the government has forced only one foreigner to sell up. Chinese already buy almost a quarter of new homes in Sydney and their outlay will more than double to A$60 billion ($46 billion) in the six years to 2020, according to Credit Suisse Group AG. 

• Dubai Seen Prepared as Home Prices Predicted to Tumble 20%. Faced with predictions that Dubai home prices may drop as much as 20 percent this year, analysts say the emirate’s real estate developers and lenders are better prepared than when a crash in 2008 brought the city to the brink of bankruptcy. Standard & Poor’s this week estimated that values may fall by as much as a fifth this year, while brokers CBRE Group and JLL Inc. see a 10 percent decline. Still, builders and banks face less risk than they did six years ago, thanks to lending restrictions, a clampdown on speculation and greater dependence on rental income.

• Emerging Stocks Drop as China Slumps, Greek Debt Talks Continue. Emerging-market stocks fell for the first time in four days as Chinese equities slumped and concern grew that Greece may not reach a deal with creditors. The Shanghai Composite Index plunged 3.5 percent, led by technology companies, after traders sold shares purchased with borrowed money for a third day. Brazilian stocks and the real tumbled following a report that former President Luiz Inacio Lula da Silva is taking preventive legal measures to avoid an arrest amid a graft probe. Hungary’s BUX index led declines in developing Europe, dropping 1.7 percent. The MSCI Emerging Markets Index slipped 0.5 percent to 988.30 at 11:28 a.m. in New York.

• Europe Stocks Drop Second Day as Greek ‘Groundhog Day’ Continues. European stocks extended a selloff as the region’s leaders differed on how Greek talks were progressing. The Stoxx Europe 600 Index lost 0.2 percent to 396.39 at the close of trading. 

• Tin Set for Worst First Half in Quarter Century on Ample Supply. Tin prices are set for the biggest first half decline in at least a quarter century amid ample supplies and lackluster demand. The metal used in electronics and packaging is down 23 percent this year, the worst-performing industrial metal on the London Metal Exchange. That’s the biggest percentage decline in full-year data on Bloomberg going back to 1990.

• Tarullo Sees No Convincing Explanation for Changes in Liquidity. Federal Reserve Governor Daniel Tarullo said regulatory changes may be one factor affecting liquidity in financial markets, but there isn’t a “very precise and convincing explanation of exactly what has happened.” Something does seem to have changed, including market structure, a bigger role for asset managers than before the 2008 financial crisis and the growth of high-frequency trading, Tarullo said Thursday at a conference in New York.

• Worried About Debt-Market Liquidity? Let Go of Those Bank Bonds. Call it the liquidity curse. If rising interest rates prompt investors to flee debt markets, bank bonds could be the hardest hit among corporate securities, according to Bank of America Corp. “We’re now moving into an environment of outflows, which means a lot of investors are going to have to sell bonds for an extended period of time,” Hans Mikkelsen, head of U.S. investment-grade credit strategy at Bank of America Merrill Lynch, said in a telephone interview.

• Options Bears Take Fresh Stab at Biotech Amid Rally Topping 500%. Knives are out again for biotechnology stocks amid a rally that has burned skeptics repeatedly for six years. Demand for options tied to declines in an exchange-traded fund tracking the companies rose to the highest level in three years relative to bullish ones, according to data compiled by Bloomberg. The Nasdaq Biotechnology Index has risen 549 percent since March 2009, including a 3.8 percent advance last week. Interest in bearish options on drug developers has jumped in the last year after the group was called out as overvalued by Federal Reserve Chair Janet Yellen on two occasions. Biotechs are selling stock at a pace not seen in a decade and one concern is that something will disrupt the money spigot. Biotech companies are doing follow-on stock offerings at the fastest pace in more than 10 years. In the first quarter, biotech and pharmaceutical companies used 93 share sales to reap $18.7 billion, three times more than in 2014, according to data compiled by Bloomberg.

• Aetna(AET) Closing In on Deal to Acquire Humana(HUM). Aetna Inc., the second-largest U.S. health insurer by market value, is closing in on an acquisition of Humana Inc. and could reach a deal as early as this weekend, several people with knowledge of the matter said. Humana shares rose 8 percent to $198.99 at 1:47 p.m. in New York, the biggest intraday gain since May 29. Aetna shares rose 2.8 percent to $131.07.

Wall Street Journal:

• Supreme Court Upholds Health-Care Subsidies–Live Blog.

Fox News:

• Supreme Court upholds ObamaCare subsidies. (video) The Supreme Court on Thursday upheld ObamaCare subsidies nationwide, in the second major court victory for President Obama on his signature health care law. In a 6-3 decision, the court ruled that subsidies are valid even in states that did not set up their own insurance exchanges. A ruling against the administration would have threatened subsidies worth millions in nearly three-dozen states and imperiled the program itself. For months, though, the administration said it had no back-up plans, confident the Supreme Court would rule in its favor.

• Watchdog reveals evidence was destroyed during probe of IRS targeting. (video) The lead government watchdog for the IRS revealed Thursday that computer evidence was erased during the investigation into the agency's targeting scandal, months after the IRS was told to preserve documents. J. Russell George, the Treasury inspector general for tax administration, testified to the House Oversight and Government Reform Committee that IRS employees erased computer backup tapes shortly after officials discovered thousands of emails related to the tax agency's Tea Party scandal had been lost. As many as 24,000 emails were lost because 422 backup tapes were "magnetically erased" around March 4, 2014.

CNBC:

• I see THIS as 3rd bubble in 15 years: Analyst Peter Boockvar. (video) "This is the third bubble in 15 years. It's in fixed income," the managing director at economic advisory firm The Lindsey Group predicted in a CNBC "Squawk Box" interview. 

• State budget balancing is putting pensions at risk. Some 150 state and local pension funds reported assets under $3 trillion to cover the estimated $4.1 trillion needed to pay benefits.

ZeroHedge:

• Merkel "Won't Be Blackmailed By Greece", Demands Deal Before Market Open On Monday.

• "Most Liberal Supreme Court Since 1960s" Gives Obama Huge Victory With 6-3 Vote In Favor Of Obamacare.

• Forget Grexit, "Madame Frexit" Says France Is Next: French Presidential Frontrunner Wants Out Of "Failed" Euro.

• Grexident Looming: Eurogroup Meeting Ends Prematurely With No Deal.

• US Services PMI Misses By Most On Record, Tumbles To Lowest Since January. (graph)

• These Three Events Will Shatter "Liquidity Illusion", Trigger Crisis, OECD Says.

• Personal Spending Surges Most Since August 2009 As Savings Rate Tumbles. (graph)

• Bundesbank Slams ECB's "Bridge Financing" To Greece. (graph)

• Individual Stocks Struggling To Keep Up With Nasdaq Rally. (graph)

• Fed Gains Fizzle As Trannies Tank. (graph)

• Dijsselbloem Says 'Saturday Or Bust' On Greece Deal - Cancels Leaders Summit.

• Shots Fired: ECB Again 'Threatens' To Collapse Greek Bank System.

Business Insider:

• Justice Scalia slammed Chief Justice Roberts in his Obamacare dissent.

• The poster child for what was once a 'can't lose' investment is filing for bankruptcy.

• Those Chinese hackers got into FBI files too.

• Kroger(KR) just announced a stock split, higher dividends, and a $500 million buyback.

• BLACKROCK(BLK) WARNS: China's debt has lost its potency and is now 'turning into poison'. Their research, citing IMF data, points to only four other credit booms of similar magnitude in China over the past 50 years. On all four occasions they ended in a banking crisis occurring within three years. Blackrock, citing a study by consultancy group McKinsey, says that between 2007 to 2014 total debt accumulated in China ballooned by $21 trillion. That increase took total Chinese debt as a percentage of GDP from 158% to 282% in just eight years.

Financial Times:

• Shadow lending crackdown looms over China’s stock market. China’s shadow banks, increasingly wary of lending into a slowing economy, have turned to the stock market, fuelling a surge in unregulated margin lending that has driven the market’s dizzying gains over the past year. Now regulators are cracking down on shadow lending to stock investors, a campaign analysts say is partly to blame for last week’s 13 per cent fall in the Shanghai Composite Index — the largest weekly drop since the global financial crisis in 2008.

• Greece’s businesses buckle after months on brink of bankruptcy. When a country teeters for months on the brink of bankruptcy — becoming a spectacle for television cameras chronicling social breakdown and prompting doomsayers to predict imminent chaos — its businesses must resort to special measures to survive.

China Business News:

• Banks in China's Shenzhen Raise Home Mortgage Rates. CCB and BOC canceled discount on interest rates of home mortgage in Shenzhen amid the city's booming housing market.

Bear Radar

Style Underperformer:

• Mid-Cap Value -.23%

Sector Underperformers:

• 1) Coal -3.05% 2) Oil Tankers -2.42% 3) Oil Service -1.35%

Stocks Falling on Unusual Volume:

• SEMI, MEI, SBRA, WRLD, APOG, CREE, ISSI, IPXL, ACE, INSY, NCR, CAF, BKS, CTL, WAT, BBBY, CAR, ETE, ARLP, NFLX, CHA, SNR, IXYS, FNSR, IPGP, HIFR, JUNO, EYES, GBX, NHTC and ALDR

Stocks With Unusual Put Option Activity:

• 1) ODP 2) ABT 3) BHI 4) XLV 5) NKE
  

Stocks With Most Negative News Mentions:

• 1) CHK 2) WRLD 3) MUR 4) PBR 5) NFLX
  

Charts:

• ETFs Falling on Unusual Volume

• Stocks Falling on Unusual Volume