Bear Radar

Style Underperformer:

• Small-Cap Value -.1%

Sector Underperformers:

• 1) Papers -.4% 2) Computer Hardware -.4% 3) Gold & Silver -.3%

Stocks Falling on Unusual Volume: 

• UEPS, YRD, SIG, JKS, SGH, BCEI and HCC

Stocks With Unusual Put Option Activity:

• 1) ETE 2) UNG 3) DKS 4) ULTA 5) DVN

Stocks With Most Negative News Mentions:

• 1) ZTO 2) RYB 3) MON 4) MDLZ 5) APC

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Growth +.4%

Sector Outperformers:

• 1) Steel +1.3% 2) Alt Energy +1.1% 3) Semis +.8%

Stocks Rising on Unusual Volume:

• RIOT, SD, XNET, HCC, ANIP, MODN, DLNG, DAIO, DQ, NVMI, BZUN, EZU, YNDX, CGNX, VRS, ASMB, PDFS, MCRI, NTP, M, BMA, TARO, AMZN, CIFS, NKTR, M, YEXT and GME

Stocks With Unusual Call Option Activity:

• 1) JNJ 2) CERN 3) DE 4) ITB 5) AMZN

Stocks With Most Positive News Mentions:

• 1) NKTR 2) NTNX 3) CPRT 4) DE 5) YNDX

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -35.6% Below 100-Day Average
• 9 Sectors Rising, 1 Sector Declining
• 56.5% of Issues Advancing, 40.6% Declining
• 143 New 52-Week Highs, 18 New Lows
• 60.9% of Issues Above 200-day Moving Average
• Average 14-Day RSI 49.9%
• Vix 9.7 -1.4%
• Total Put/Call .83 -9.8%
• TRIN/Arms .87 -8.9%

Friday Watch

Night Trading 

• Asian equity indices are -.5% to +.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 77.0 unch. 

• Asia Pacific Sovereign CDS Index 15.50 unch.

• Bloomberg Emerging Markets Currency Index 73.29 -.05%.

• S&P 500 futures +.06%.

• NASDAQ 100 futures -.05%.

Morning Preview Links

Earnings of Note
Company/Estimate

• None of note

Economic Releases 

9:45 am EST

• The Preliminary Markit US Manufacturing PMI is estimated to rise to 55.0 versus 54.6 in October.
• The Preliminary Markit US Services PMI is estimated at 55.3 versus 55.3 in October.

Upcoming Splits

• None of note

Other Potential Market Movers

• The German IFO Guidance could also impact trading today.

BOTTOM LINE:  Asian indices are mostly lower, weighed down by commodity and financial shares in the region. I expect US stocks to open mixed and to rally into the close, finishing modestly higher.  The Portfolio is 100% net long heading into the day.

Stocks Slightly Lower into Final Hour on Profit-Taking, Technical Selling, Yen Strength, Financial/Defense Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 9.75 +.21%

• Euro/Yen Carry Return Index 136.99 -.42%

• Emerging Markets Currency Volatility(VXY) 7.90 +.64%

• S&P 500 Implied Correlation 16.28 unch.

• ISE Sentiment Index 102.0 -.32%
  

• Total Put/Call .88 +4.76%

• NYSE Arms .82 -39.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 52.67 -1.71%
  

• America Energy Sector High-Yield CDS Index 371.0 -.59%

• European Financial Sector CDS Index 48.18 -2.69%

• Western Europe Sovereign Debt CDS Index 3.96 +4.91%

• Asia Pacific Sovereign Debt CDS Index 15.26 -1.1%

• Emerging Market CDS Index 185.32 unch.
  

• iBoxx Offshore RMB China Corporate High Yield Index 145.50 +.01%

• 2-Year Swap Spread 17.5 -.5 basis point

• TED Spread 16.75 -1.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -46.25 +3.25 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 73.24 +.60%
• 3-Month T-Bill Yield 1.29% +2.0 basis points
  

• Yield Curve 59.5 +1.0 basis point

• China Import Iron Ore Spot $65.17/Metric Tonne +4.27%

• Citi US Economic Surprise Index 55.70 -4.1 points

• Citi Eurozone Economic Surprise Index 54.40 -.2 basis point

• Citi Emerging Markets Economic Surprise Index 14.20 -.5 point

• 10-Year TIPS Spread 1.88 unch.
  
• 100.0% chance of Fed rate hike at Jan. 31 meeting, 100.0% chance at March 21 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -77 open in Japan 
• China A50 Futures: Indicating -24 open in China

• DAX Futures: Indicating -19 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 100% Net Long

Bear Radar

Style Underperformer:

• Mid-Cap Growth unch.

Sector Underperformers:

• 1) Papers -.9% 2) Semis -.5% 3) I-Banks -.5%

Stocks Falling on Unusual Volume: 

• GES, BZUN, COLL, HPE, HPQ, ICHR and IRBT

Stocks With Unusual Put Option Activity:

• 1) LCI 2) GNC 3) SRPT 4) HPQ 5) ILG

Stocks With Most Negative News Mentions:

• 1) IRBT 2) BLMN 3) OTEX 4) EE 5) BONT

Charts:

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