Morning Market Internals

NYSE Composite Index:

• Volume Running -44.3% Below 100-Day Average
• 2 Sectors Rising, 8 Sectors Declining
• 59.3% of Issues Advancing, 36.0% Declining
• 48 New 52-Week Highs, 9 New Lows
• 57.2% of Issues Above 200-day Moving Average
• Average 14-Day RSI 41.6%
• Vix 11.7 +1.9%
• Total Put/Call .79 -10.2%
• TRIN/Arms .74 -42.1%

Friday Watch

Night Trading 

• Asian equity indices are -.50% to unch. on average.
• Asia Ex-Japan Investment Grade CDS Index 161.75 -4.75 basis points.
• Asia Pacific Sovereign CDS Index 37.5 +.25 basis point.
• Bloomberg Emerging Markets Currency Index 69.50 -.01%. 
• S&P 500 futures +.03%. 
• NASDAQ 100 futures -.04%.

Morning Preview Links

Earnings of Note
Company/Estimate

• None of note

Economic Releases
10:00 am EST

• New Home Sales for November are estimated to rise to 575K versus 563K in October.
• Final Univ. of Mich. Consumer Sentiment for December is estimated at 98.0 versus a prior estimate of 98.0. 

Upcoming Splits 

• None of note

Other Potential Market Movers

• The German GfK report could also impact trading today.

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

Stocks Lower into Afternoon on Disappointing US Economic Data, Earnings Outlook Concerns, Technical Selling, Homebuilding/Retail Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Light

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 11.52 +2.22%

• Euro/Yen Carry Return Index 128.23 +.19%

• Emerging Markets Currency Volatility(VXY) 11.21 -.44%

• S&P 500 Implied Correlation 49.33 -1.38%

• ISE Sentiment Index 36.0 -53.25%
  

• Total Put/Call .91 -1.09%

• NYSE Arms 1.41 -12.13%

Credit Investor Angst:

• North American Investment Grade CDS Index 66.48 -.29%
  

• America Energy Sector High-Yield CDS Index 452.0 -7.82%

• European Financial Sector CDS Index 94.16 +.33%

• Western Europe Sovereign Debt CDS Index 20.57 +.98%

• Asia Pacific Sovereign Debt CDS Index 37.21 -.08%

• Emerging Market CDS Index 245.23 +1.51%
  

• iBoxx Offshore RMB China Corporate High Yield Index 133.09 -.02%

• 2-Year Swap Spread 30.5 +2.0 basis points

• TED Spread 50.0 +2.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -59.0 -2.0 basis points
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 69.48 -.05%
• 3-Month T-Bill Yield .50% -1.0 basis point

• Yield Curve 136.0 +2.0 basis points
  

• China Import Iron Ore Spot $76.15/Metric Tonne -3.84%

• Citi US Economic Surprise Index 21.0 -1.8 points

• Citi Eurozone Economic Surprise Index 56.30 -.4 basis point

• Citi Emerging Markets Economic Surprise Index 7.90 +.2 point

• 10-Year TIPS Spread 1.97% +4.0 basis points
• 33.3% chance of Fed rate hike at March 15 meeting, 43.7% chance at May 3 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +12 open in Japan 
• China A50 Futures: Indicating -17 open in China

• DAX Futures: Indicating -7 open in Germany

Portfolio: 

• Slightly Lower: On losses in my retail sector longs 

• Disclosed Trades: None

• Market Exposure: 50% Net Long

Bear Radar

Style Underperformer:

• Small-Cap Growth -1.1%

Sector Underperformers:

• 1) Retail -2.7% 2) Steel -2.2% 3) Homebuilders -1.4%

Stocks Falling on Unusual Volume: 

• RHT, FRED, BBBY, PKX, IOC, CAMP, WGO, IVR, LNN, FINL, IRWD, TWLO, CPSI, MORN, LADR, MLHR, KIRK, AIR, ZUMZ, AVA, VMI, NBIX, MCHI, MAT, KB, AVXS, CC and XLRN

Stocks With Unusual Put Option Activity:

• 1) SCHW 2) WMT 3) EWW 4) XRT 5) BK

Stocks With Most Negative News Mentions:

• 1) FINL 2) BBBY 3) RHT 4) KORS 5) ZUMZ

Charts:

• ETFs Falling on Unusual Volume
• Stocks Falling on Unusual Volume

Bull Radar

Style Outperformer:

• Large-Cap Value -.3%

Sector Outperformers:

• 1) Hospitals +.6% 2) Semis +.5% 3) Gold & Silver +.3%

Stocks Rising on Unusual Volume:

• WTW, MU, CVRR, SUN, WATT, MD, CVI and PI

Stocks With Unusual Call Option Activity:

• 1) PAA 2) CVI 3) OCLR 4) GSAT 5) THC

Stocks With Most Positive News Mentions:

• 1) SUN 2) MU 3) ALXN 4) OXY 5) NKE

Charts:

• ETFs Rising on Unusual Volume
• Stocks Rising on Unusual Volume

Morning Market Internals

NYSE Composite Index:

• Volume Running -28.4% Below 100-Day Average
• 1 Sector Rising, 9 Sectors Declining
• 43.9% of Issues Advancing, 52.0% Declining
• 56 New 52-Week Highs, 8 New Lows
• 58.3% of Issues Above 200-day Moving Average
• Average 14-Day RSI 43.1%
• Vix 11.3 +.3%
• Total Put/Call .69 -25.0%
• TRIN/Arms 1.02 -36.3%