Morning Market Internals

NYSE Composite Index:

• Volume Running -12.5% Below 100-Day Average
• 6 Sectors Rising, 4 Sectors Declining
• 53.5% of Issues Advancing, 42.5% Declining
• 137 New 52-Week Highs, 14 New Lows
• 48.0% of Issues Above 200-day Moving Average
• Average 14-Day RSI 39.9%
• Vix 10.2 +1.0%
• Total Put/Call .71 -2.7%
• TRIN/Arms 1.42 +27.3%

Wednesday Watch

Night Trading 

• Asian equity indices are +.25% to +.75% on average.

• Asia Ex-Japan Investment Grade CDS Index 78.5 -.25 basis point. 

• Asia Pacific Sovereign CDS Index 16.50 unch.

• Bloomberg Emerging Markets Currency Index 73.38 +.07%.

• S&P 500 futures +.03%.

• NASDAQ 100 futures +.06%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (OZRK)/.74
• (BLK)/5.53
• (DAL)/1.54
• (FAST)/.50

Economic Releases 

10:00 am EST

• JOLTS Job Openings for August are estimated to fall to 6135K versus 6170K in July.

2:00 pm EST

• FOMC Meeting Minutes.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Fed's Evans speaking, $24B 3Y T-Note auction, $20B 10Y T-Note auction, weekly MBA Mortgage Applications report and the (KR) investor conference could also impact trading today.

BOTTOM LINE:  Asian indices are mostly higher, boosted by industrial and technology 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.

Morning Market Internals

NYSE Composite Index:

• Volume Running -4.2% Below 100-Day Average
• 8 Sectors Rising, 2 Sectors Declining
• 66.6% of Issues Advancing, 30.0% Declining
• 154 New 52-Week Highs, 9 New Lows
• 47.2% of Issues Above 200-day Moving Average
• Average 14-Day RSI 39.6%
• Vix 10.3 unch.
• Total Put/Call 1.06 +7.1%
• TRIN/Arms 1.39 +12.0%

Tuesday Watch

Night Trading 

• Asian equity indices are unch. to +.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 78.75 +1.0 basis point. 

• Asia Pacific Sovereign CDS Index 16.50 unch.

• Bloomberg Emerging Markets Currency Index 73.23 +.14%.

• S&P 500 futures +.07%.

• NASDAQ 100 futures +.09%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (CUDA)/.17
• (HCSG)/.31
• (VOXX)/-.01

Economic Releases 

6:00 am EST:

• The NFIB Small Business Optimism Index for September is estimated to fall to 105.0 versus 105.3 in August.

Upcoming Splits

• None of note

Other Potential Market Movers

• The Fed's Kashkari speaking, Fed's Kaplan speaking, German Export Data report, China Money Supply report, UK Manufacturing PMI report, weekly retail sales report and the (WDAY) analyst day could also impact trading today.

BOTTOM LINE:  Asian indices are mostly higher, boosted by industrial and technology 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 Finish Slightly Lower on Geopolitical Concerns, Profit-Taking, Technical Selling, Medical/Retail Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Light

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 10.45 +8.3%

• Euro/Yen Carry Return Index 137.93 +.06%

• Emerging Markets Currency Volatility(VXY) 7.96 +2.45%

• S&P 500 Implied Correlation 18.77 +9.06%

• ISE Sentiment Index 67.0 -22.99%
  

• Total Put/Call .99 +16.5

• NYSE Arms 1.26 +31.2%

Credit Investor Angst:

• North American Investment Grade CDS Index 54.28 +.51%
  

• America Energy Sector High-Yield CDS Index 398.0 -.39%

• European Financial Sector CDS Index 60.14 -.69%

• Western Europe Sovereign Debt CDS Index 5.18 -4.52%

• Asia Pacific Sovereign Debt CDS Index 16.52 +.55%

• Emerging Market CDS Index 178.69 -.04%
  

• iBoxx Offshore RMB China Corporate High Yield Index 142.18 +.22%

• 2-Year Swap Spread 27.5 unch.

• TED Spread 28.75 +.75 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -39.5 +.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 73.18 -.14%
• 3-Month T-Bill Yield 1.06% unch.
  

• Yield Curve 85.50 -.5 basis point

• China Import Iron Ore Spot $62.67/Metric Tonne +.69%

• Citi US Economic Surprise Index 6.50 +3.1 points

• Citi Eurozone Economic Surprise Index 49.90 +4.1 points

• Citi Emerging Markets Economic Surprise Index 17.40 -.5 basis point

• 10-Year TIPS Spread 1.87 -1.0 basis point
  
• 80.8% chance of Fed rate hike at Dec. 13 meeting, 81.5% chance at Jan. 31 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +20 open in Japan 
• China A50 Futures: Indicating +81 open in China

• DAX Futures: Indicating +20 open in Germany

Portfolio: 

• Slightly Lower: On losses in my retail/medical sector longs

• Disclosed Trades: None

• Market Exposure: 100% Net Long

Morning Market Internals

NYSE Composite Index:

• Volume Running -24.3% Below 100-Day Average
• 6 Sectors Rising, 4 Sectors Declining
• 43.2% of Issues Advancing, 52.0% Declining
• 143 New 52-Week Highs, 13 New Lows
• 48.0% of Issues Above 200-day Moving Average
• Average 14-Day RSI 40.2%
• Vix 10.0 +3.7%
• Total Put/Call .71 -16.5%
• TRIN/Arms 1.48 +54.7%