Bear Radar

Style Underperformer:

• Small-Cap Value +.4%

Sector Underperformers:

• 1) Tobacco -.4% 2) Foods unch. 3) Papers unch.

Stocks Falling on Unusual Volume: 

• LJPC, VECO, AOBC, PRTY, COO, OKTA and FIZZ

Stocks With Unusual Put Option Activity:

• 1) SO 2) LC 3) DUST 4) S 5) CL

Stocks With Most Negative News Mentions:

• 1) AOBC 2) VECO 3) LJPC 4) RGR 5) BLL

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Growth +.7%

Sector Outperformers:

• 1) Biotech +2.2% 2) Steel +1.7% 3) Software +1.4%

Stocks Rising on Unusual Volume:

• CLDR, AGX, DEA, SAGE, FANH, SAIC, UBIO, VNOM, CUTR, RDUS, VRX, JACK, Y, NUE, OLED, MTN, RBA, UNFI, ALXN, DQ, JP, LITE, IHG, ATRA, BSX, SCMP, CARA and RVNC

Stocks With Unusual Call Option Activity:

• 1) ETSY 2) VWO 3) OLED 4) UPS 5) FNSR

Stocks With Most Positive News Mentions:

• 1) SAGE 2) OLED 3) CELG 4) VNTV 5) BSX

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -6.1% Below 100-Day Average
• 9 Sectors Rising, 1 Sector Declining
• 58.2% of Issues Advancing, 37.7% Declining
• 72 New 52-Week Highs, 18 New Lows
• 61.2% of Issues Above 200-day Moving Average
• Average 14-Day RSI 49.0%
• Vix 9.7 -4.2%
• Total Put/Call .95 +14.5%
• TRIN/Arms .54 -40.2%

Friday Watch

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 73.25 unch. 

• Asia Pacific Sovereign CDS Index 14.25 +.25 basis point

• Bloomberg Emerging Markets Currency Index 72.89 -.03%.

• S&P 500 futures +.01%.

• NASDAQ 100 futures +.09%.

Morning Preview Links

Earnings of Note
Company/Estimate

• None of note

Economic Releases

8:30 am EST:

• The Change in Non-Farm Payrolls for November is estimated to fall to 195K versus 261K in October.
• The Unemployment Rate for November is estimated to remain at 4.1%.
• Average Hourly Earnings MoM for November is estimated to rise +.3% versus unch. in October.
  

10:00 am EST

• Wholesale Trade Sales MoM for October are estimated to rise +.3% versus a +1.32% gain in September.
• Preliminary Univ. of Mich. Consumer Confidence for December is estimated to rise to 99.0 versus 98.5 in November.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Govt. funding deadline, China Trade Balance report and the (STRA) investor day could also impact trading today.

BOTTOM LINE:  Asian indices are 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 Rising into Final Hour on Economic Optimism, Oil Gain, Yen Weakness, Biotech/Tech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 10.43 -5.4%

• Euro/Yen Carry Return Index 138.84 +.56%

• Emerging Markets Currency Volatility(VXY) 8.09 +.25%

• S&P 500 Implied Correlation 37.26 -.37%

• ISE Sentiment Index 189.0 +152.0%
  

• Total Put/Call .80 unch.

• NYSE Arms .93 -33.7%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.68 -.76%
  

• America Energy Sector High-Yield CDS Index 372.0 +.50%

• European Financial Sector CDS Index 46.58 -.16%

• Western Europe Sovereign Debt CDS Index 3.60 -.55%

• Asia Pacific Sovereign Debt CDS Index 14.24 +1.06%

• Emerging Market CDS Index 178.87 +.87%
  

• iBoxx Offshore RMB China Corporate High Yield Index 145.74 +.01%

• 2-Year Swap Spread 19.0 +1.25 basis points

• TED Spread 23.75 +4.0 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -63.0 -4.5 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 72.92 -.32%
• 3-Month T-Bill Yield 1.28% -1.0 basis point
  

• Yield Curve 56.25 +3.75 basis points

• China Import Iron Ore Spot $72.68/Metric Tonne unch.

• Citi US Economic Surprise Index 63.20 +.3 point

• Citi Eurozone Economic Surprise Index 59.40 -7.6 basis points

• Citi Emerging Markets Economic Surprise Index 2.30 -.1 point

• 10-Year TIPS Spread 1.89 +1.0 basis point
  
• 100.0% chance of Fed rate hike at Jan. 31 meeting, 100.0% chance at March 21 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +167 open in Japan 
• China A50 Futures: Indicating +6 open in China

• DAX Futures: Indicating +42 open in Germany

Portfolio: 

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 100% Net Long

Today's Headlines

Bloomberg:

• Trump to Release Infrastructure Plan in January, Official Says. President Donald Trump plans to keep pushing his legislative agenda in 2018 by releasing his long-promised infrastructure plan in early January, a senior administration official said. Infrastructure advocates question whether a Republican-led Congress will be able to pass a spending plan with enough federal funding if it’s already approved a tax measure that official estimates say would bloat the budget deficit. Some say the administration missed its best opportunity to deliver a meaningful public works initiative by not incorporating it into the tax bill, which is nearing approval. 
• The GOP Must Crack These Four Tax Bill Disagreements.
• Consumer Comfort in U.S. Advances to a 13-Week High.
• Hedge Funds, Beware: You Might Be Relying on Illegal Data Feeds.

Wall Street Journal:

• Jailed for a Text: China’s Censors Are Spying on Mobile Chat Groups. Authorities scour private chats on messaging apps for blacklisted words, sensitive images.
• Family Businesses Worry the Tax Overhaul Will Hurt Them. Grocery stores, small manufacturers and others say the new tax structure could put them at a disadvantage to big corporations.
• Ford(F) to Move Electric Car Production to Mexico, Tags U.S. Plant for Driverless Car. Auto maker plans to convert suburban Detroit factory into manufacturing hub for future driverless vehicles.
• Actually, Here’s Why Stocks Can Keep Going Up. Equities still offer a risk premium hard to find elsewhere.
• Value Stocks Over Growth Stocks? Fat Chance. Value stocks are at last trouncing growth shares. But it won’t last for long.

Fox News:

• Top DOJ official demoted amid probe of contacts with Trump dossier firm.
• 2 students killed, gunman dead after shooting at New Mexico high school.

CNBC:

• Bitcoin trading on a traditional exchange begins Sunday night and some fear it is far from ready. (video)
• Billionaire Leon Cooperman: If Hillary Clinton had won the presidency, the US would be in a recession. (video)
• Sen. Cornyn signals GOP could tweak state and local deductions in final tax bill. (video)
• Apple(AAPL) is planning to launch a 6.3-inch iPhone with same screen as iPhone X: Report.
• Household wealth jumps to near $97 trillion, 72 percent higher than crisis level.
• Hedge fund billionaire Cooperman: The stock market is not overvalued yet. (video)

Zero Hedge:

• Bitcoin Rebounds After Exchange 'Break' - Novogratz "Not Close To The End Of The Speculative Phase".
• "Irresponsible, Unwarranted": Saudis Condemn Trump's Jerusalem Recognition, Warn Of "Serious Consequences".
• Crackdown Comes To Wall Street: Morgan Stanley Fires Harold Ford Jr Over Alleged Sexual Misconduct.
• Government On Verge Of Shutdown As Democrats Refuse To Support Stopgap Plan.
• Senator Al Franken Officially Confirms His Resignation In Senate Speech.
• Banks Issue Last Minute Warning About Risks Of Bitcoin Futures, Ask Regulator For Review.
• Challenger Shows Worst November For Job Cuts Since 2012. (graph)
• Precious Metal Pounding Continues - Silver Now Red For 2017.
• Hamas Leader Calls For Third Intifada Following Trump's "Declaration Of War".
• Unemployed Americans Are The Most "Comfortable" In 16 Years. (graph)
• CFPB Reportedly Funneled Billions Into "Secret Democrat Slush Fund", Consultant Claims.
• Largest Crypto-Mining Exchange Confirms It Was Hacked, $62 Million In Bitcoin Stolen.
• An Angry Senator Grassley Lashes Out At FBI, DOJ In Fiery Senate Floor Speech.