Bear Radar

Style Underperformer:

• Small-Cap Growth +.9%

Sector Underperformers:

• 1) Retail +.1% 2) Utilities +.2% 3) Biotech +.2%

Stocks Falling on Unusual Volume: 

• NVRO, GCO, HALO, FL and MMYT

Stocks With Unusual Put Option Activity:

• 1) CHRW 2) AXL 3) WTW 4) CY 5) AMAT

Stocks With Most Negative News Mentions:

• 1) CPB 2) SYMC 3) GPS 4) LB 5) MO

Charts:

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

Bull Radar

Style Outperformer:

• Mid-Cap Value +1.2%

Sector Outperformers:

• 1) Steel +4.2% 2) Hospitals +4.2% 3) Oil Service +2.5%

Stocks Rising on Unusual Volume:

• PTX, GLYC, FLN, AAWW, DE, ADSK, CYOU, HCC, LL, CBI, MCK, AZUL, JKS, CRM, PTC, SOHU, TITN, BITA, WPPGY, ROST, CQH, RVNC, ITUB, HIBB, CREE, AGCO, TAL and SKT

Stocks With Unusual Call Option Activity:

• 1) ADSK 2) LL 3) ASH 4) TXN 5)DE

Stocks With Most Positive News Mentions:

• 1) ADSK 2) DE 3) MCK 4) NVDA 5) WMT

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +12.1% Above 100-Day Average
• 10 Sectors Rising, 0 Sectors Declining
• 74.1% of Issues Advancing, 23.2% Declining
• 70 New 52-Week Highs, 37 New Lows
• 42.3% of Issues Above 200-day Moving Average
• Average 14-Day RSI 32.6%
• Vix 11.9 -18.6%
• Total Put/Call .89 -20.5%
• TRIN/Arms .59 -48.7%

Friday Watch

Night Trading 

• Asian equity indices are -.25% to +.25% on average.
• Asia Ex-Japan Investment Grade CDS Index 92.5 unch. 
• Asia Pacific Sovereign CDS Index 21.25 +.5 basis point.
• Bloomberg Emerging Markets Currency Index 72.13 +.02%.
• S&P 500 futures -.04%.
• NASDAQ 100 futures -.08%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (CPB)/.64
• (DE)/1.69
• (FL)/1.38
• (QSII)/.19

Economic Releases 

• None of note

Upcoming Splits

• None of note

Other Potential Market Movers

• The Fed's Bullard speaking, German PPI, (AET) annual meeting, (CHK) annual meeting, (JCP) annual meeting and the (COP) investor update could also impact trading today.

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

Stocks Slightly Higher into Afternoon on Economic Optimism, Oil Gain, Technical Buying, Biotech/Semi Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Mixed
  

• Volume: Heavy

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 14.59 -6.41%

• Euro/Yen Carry Return Index 128.70 -.29%

• Emerging Markets Currency Volatility(VXY) 7.83 unch.

• S&P 500 Implied Correlation 44.61 -6.68%

• ISE Sentiment Index 105.0 +19.3%
  

• Total Put/Call 1.08 -.92%

• NYSE Arms 1.53 +27.1%

Credit Investor Angst:

• North American Investment Grade CDS Index 65.37 +1.69%
  

• America Energy Sector High-Yield CDS Index 369.0 +2.1%

• European Financial Sector CDS Index 71.12 +1.99%

• Western Europe Sovereign Debt CDS Index 8.51 +8.48%

• Asia Pacific Sovereign Debt CDS Index 21.52 +3.79%

• Emerging Market CDS Index 205.93 +4.55%
  

• iBoxx Offshore RMB China Corporate High Yield Index 138.30 +.14%

• 2-Year Swap Spread 22.75 +.25 basis point

• TED Spread 29.25 +1.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -33.0 -1.5 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 72.910 -1.14%

• 3-Month T-Bill Yield .89% -1.0 basis point
  

• Yield Curve 96.0 -2.0 basis points
  

• China Import Iron Ore Spot $61.60/Metric Tonne -.96%

• Citi US Economic Surprise Index -33.60 +3.9 points

• Citi Eurozone Economic Surprise Index 61.90 -1.9 points

• Citi Emerging Markets Economic Surprise Index 27.7 -.7 point

• 10-Year TIPS Spread 1.78 -2.0 basis points
  

• 81.0% chance of Fed rate hike at July 26 meeting, 86.0% chance at Sept. 20 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -43 open in Japan 

• China A50 Futures: Indicating +13 open in China

• DAX Futures: Indicating -27 open in Germany

Portfolio: 

• Slightly Higher: On gains in my biotech/tech/retail sector longs 

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

• Market Exposure: Moved to 25% Net Long

Bear Radar

Style Underperformer:

• Mid-Cap Value +.2%

Sector Underperformers:

• 1) Steel -4.2% 2) Gold & Silver -2.3% 3) Oil Tankers -2.3%

Stocks Falling on Unusual Volume: 

• AZUL, GOL, CSCO, VIV, ITUB, ZTO, UGP, CBD, BAK, CBI, ERJ, PSTG and NLNK

Stocks With Unusual Put Option Activity:

• 1) EMES 2) TPX 3) LB 4) CSCO 5) ETE

Stocks With Most Negative News Mentions:

• 1) ELGX 2) ASNA 3) FSLR 4) JACK 5) TPX

Charts:

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