Bull Radar

Style Outperformer:

• Small-Cap Value +1.6%

Sector Outperformers:

• 1) Oil Service +3.6% 2) Banks +2.2% 3) Construction +1.7%

Stocks Rising on Unusual Volume:

• DFT, LXRX, TSRO, BABA, YTRA, CMTL, COLL, OKSB, CAF, ENZ, CNOB, CWH, CPF, BLUE, ASTE, WDR, SEMG, LIVN, TREE, MSFG, QTS, SPOK, NAV, JWN, URBN, EMKR, COR and XHR

Stocks With Unusual Call Option Activity:

• 1) KBE 2) PAY 3) TSRO 4) YHOO 5) ZBH

Stocks With Most Positive News Mentions:

• 1) CNIT 2) ZNGA 3) BABA 4) CMA 5) HUM

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -1.6% Below 100-Day Average
• 9 Sectors Rising, 1 Sector Declining
• 55.1% of Issues Advancing, 39.9% Declining
• 116 New 52-Week Highs, 24 New Lows
• 46.8% of Issues Above 200-day Moving Average
• Average 14-Day RSI 37.6%
• Vix 9.6 -5.9%
• Total Put/Call .93 +34.8%
• TRIN/Arms .89 -33.8%

Friday Watch

Night Trading 

• Asian equity indices are -.25% to +.50% on average.
• Asia Ex-Japan Investment Grade CDS Index 86.25 -.75 basis point. 
• Asia Pacific Sovereign CDS Index 18.25 unch.
• Bloomberg Emerging Markets Currency Index 73.32 +.06%.
• S&P 500 futures +.06%.
• NASDAQ 100 futures -.05%.

Morning Preview Links

Earnings of Note
Company/Estimate

• None of note

Economic Releases 

10:00 am EST

• Wholesale Trade Sales MoM for April are estimated to rise +.2% versus unch. in March.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Russell Index rebalancing, China PPI report, WASDE crop report, (KORS) investor day and the (URBN) quarterly sales update could also impact trading today.

BOTTOM LINE:  Asian indices are mostly higher, boosted by technology and industrial shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher.  The Portfolio is 100% net long heading into the day.

Stocks Slightly Lower into Final Hour on UK Election Uncertainty, Technical Selling, Profit-Taking, Utility/Gold & Silver Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Above Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 10.01 -3.66%

• Euro/Yen Carry Return Index 128.83 -.16%

• Emerging Markets Currency Volatility(VXY) 8.15 unch.

• S&P 500 Implied Correlation 39.17 -4.16%

• ISE Sentiment Index 104.0 +60.0%
  

• Total Put/Call .64 -28.9%

• NYSE Arms 1.14 +4.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 61.32 +.66%
  

• America Energy Sector High-Yield CDS Index 414.0 +3.41%

• European Financial Sector CDS Index 66.56 -3.47%

• Western Europe Sovereign Debt CDS Index 7.80 -5.57%

• Asia Pacific Sovereign Debt CDS Index 18.18 -1.09%

• Emerging Market CDS Index 195.76 +.66%
  

• iBoxx Offshore RMB China Corporate High Yield Index 138.80 +.03%

• 2-Year Swap Spread 21.25 +.5 basis point

• TED Spread 23.25 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -33.25 -1.0 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 73.30 +.04%
• 3-Month T-Bill Yield .99% unch.
  

• Yield Curve 87.0 +1.0 basis point
  

• China Import Iron Ore Spot $55.43/Metric Tonne n/a

• Citi US Economic Surprise Index -43.20 -.8 point

• Citi Eurozone Economic Surprise Index 39.50 +.5 point

• Citi Emerging Markets Economic Surprise Index 11.0 +2.1 points

• 10-Year TIPS Spread 1.80 unch.
  
• 96.5% chance of Fed rate hike at July 26 meeting, 97.4% chance at Sept. 20 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +130 open in Japan 
• China A50 Futures: Indicating -11 open in China

• DAX Futures: Indicating +5 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 100% Net Long

Bear Radar

Style Underperformer:

• Large-Cap Growth unch.

Sector Underperformers:

• 1) Gold & Silver -1.4% 2) Utilities -1.0% 3) Restaurants -.5%

Stocks Falling on Unusual Volume: 

• IVC, MZOR, ENR, URBN, HABT, SINA, EDU, VMW, DVMT and NTNX

Stocks With Unusual Put Option Activity:

• 1) VER 2) YHOO 3) MAR 4) FSLR 5) CMCSA

Stocks With Most Negative News Mentions:

• 1) LGCY 2) URBN 3) SNAP 4) HA 5) LEA

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Value +2.1%

Sector Outperformers:

• 1) Steel +3.2% 2) Banks +2.5% 3) Alt Energy +2.2%

Stocks Rising on Unusual Volume:

• SCLN, BABA, JWN, FLIC, CMTL, TRP, YHOO, OKSB, SELB, BZUN, SWIR, XBKS, TLRD, VBTX, CAF, HOME, JD, IIIN, JCAP, KMG, BCO, VRNT, CAB, LOXO, REVG, RH, SYNA, OKTA, MIK, FIBK and VRNT

Stocks With Unusual Call Option Activity:

• 1) YHOO 2) KBE 3) TPX 4) INFN 5) MRK

Stocks With Most Positive News Mentions:

• 1) BABA 2) NVDA 3) AMD 4) NAV 5) SHW

Charts:

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