Bear Radar

Style Underperformer:

• Large-Cap Growth -.1%

Sector Underperformers:

• 1) Banks -.9% 2) Semis -.9% 3) Alt Energy -.5%

Stocks Falling on Unusual Volume: 

• PTLA, MU and AMC

Stocks With Unusual Put Option Activity:

• 1) JCP 2) AXTA 3) MYL 4) RIOT 5) NWL

Stocks With Most Negative News Mentions:

• 1) PTLA 2) SKYW 3) AAPL 4) FLWS 5) CRUS

Charts:

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

Bull Radar

Style Outperformer:

• Mid-Cap Value +.4%

Sector Outperformers:

• 1) Gold & Silver +2.2% 2) Retail +1.5% 3) Oil Service +1.5%

Stocks Rising on Unusual Volume:

• SCMP, FEN, KLXI, CEM, KYN, NETE, MARK, TYG, EIGR, SIEB, LJPC, FINL, NTG, APPN, CORT, MNK, CVRR, RIOT, MLHR, XOMA, ACAD, PLSE, ERJ, APOG, MIXT, EROS, TYG  and KYN

Stocks With Unusual Call Option Activity:

• 1) EXEL 2) XPO 3) ADI 4) USO 5) CSC

Stocks With Most Positive News Mentions:

• 1) DMPI 2) KNL 3) KLXI 4) MAGS 5) MLHR

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -45.6% Below 100-Day Average
• 8 Sectors Rising, 2 Sectors Declining
• 55.7% of Issues Advancing, 40.7% Declining
• 129 New 52-Week Highs, 13 New Lows
• 61.3% of Issues Above 200-day Moving Average
• Average 14-Day RSI 50.6%
• Vix 10.2 +3.3%
• Total Put/Call 1.12 +19.2%
• TRIN/Arms .63 -35.2%

Tuesday Watch

Night Trading

• Asian indices are -.5% to +.25% on average.
• Asia Ex-Japan Investment Grade CDS Index 68.0 -.25 basis point.
• Asia Pacific Sovereign CDS Index 13.5 +.25 basis point.
• Bloomberg Emerging Markets Currency Index 73.81 +.02%.
• S&P 500 futures -.03%.
• NASDAQ 100 futures -.10%.

Morning Preview Links

Earnings of Note

Company/Estimate

• None of note

Economic Releases   
9:00 am EST

• The S&P CoreLogic CS 20-City MoM for October is estimated to rise +.8% versus a +.52% gain in September.
  

10:00 am EST

• The Richmond Fed Manufacturing Index for December is estimated to fall to 21.0 versus 30.0 in November.
  

10:30 am EST

• The Dallas Fed Manufacturing Activity Index for December is estimated to rise to 20.0 versus 19.4 in November.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The BoJ's Kuroda speaking and the 2Y T-Note auction could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by consumer 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 week.

Today's Headlines

Bloomberg:

• Spain's King Felipe Urges Catalan Leaders to Act Responsibly. “Catalan citizens voted to elect their representatives in the parliament who must now confront the problems that affect all Catalans, respecting plurality and thinking responsibly for the good of all," Felipe said in his annual Christmas Eve speech on Sunday night, sitting in the Zarzuela Palace with the Spanish and European Union flags behind him. The king said 2017 had been a difficult year, “marked mainly by the conflict in Catalonia," adding that Spain is a country in which everybody is free to express their thoughts without imposing them on others.

• Digital Coins Resume Selloff as Recovery Fizzles. “The West is what’s causing this selloff,” said Mati Greenspan, senior market analyst at Tel Aviv-based online broker eToro. The recent cryptocurrency rally was so steep that investors were prone to take money off the table going into the holiday season, he said. A rebound fizzled Saturday afternoon and traders turned pessimistic again, driving bitcoin down 13 percent in the past 24 hours. The drop among the 10 largest digital coins, ranging up to 21 percent for iota, brings end-of-year weakness to a market that just had its worst four-day tumble since 2015.

Wall Street Journal:

• How Tax Law Will Help Some Housing Markets. Tax overhaul is a boon for housing markets in low-tax states.

• Who Regulates Bitcoin Trading? No U.S. Agency Has Jurisdiction. Futures regulators at the CFTC recently sounded an alarm on leveraged trading on unregulated exchanges, while the SEC cracks down on ICOs.

• Russian Nuclear Plant Stokes Europe’s Fears of a Power Play. Lithuanians say Moscow could use project in Belarus to induce panic; Russia calls claim ‘patently bogus’.

Fox News:

• Trump's rails against 'fake news,' thanks veterans during busy Christmas Eve.

• With immigrant pardons, Gov. Brown butts heads again with White House.

CNBC: 

• Asia futures point higher ahead of Christmas day trading.

• Mexico murders hit record high, dealing blow to president.

• Tax cuts are a game-changer, Wells Fargo backs away from cautious call. (video)

• Tax bill provisions may help parents defray this massive cost.

• 'Star Wars: The Last Jedi' soars to $745 million worldwide.

Zero Hedge:

• Wife Of Fusion GPS Founder Admits Her Husband Was Behind Fake "RussiaGate" Story.

• Liberals Behind "The Young Turks" And Vice Apologize For Blatant Sexism.

• China Admits To Fake Data (Again) - Hidden Debt & Inflated Revenues.

• Social Media Platforms Need To Be Regulated! NYU Prof Sees "Dangerous Issues For Society".

• Northeast Forecast To Get Big Winter Blast.

• Saudi Airstrikes Kill 48 Yemeni Civilians In 24 Hours.

• North Korea Declares New Sanctions An "Act Of War," Refuses To Ever Abandon Its Nukes.

• "These Were The People Investigating Hillary": Trump Escalates War With FBI.

Business Insider:

• Morgan Stanley says the true price of bitcoin might be zero.

• 55% of white Americans now think white people are being racially discriminated against.

• A fund betting on robots and AI is crushing it — and it's targeting millennial investors.

The Telegraph: 

• Bitcoin at risk of Chinese sabotage.

Today's Headlines

Bloomberg:

• The Year in Money.

• Mysterious Copper Trades Send Metal to Longest Rally in a Year.

Wall Street Journal:

• In Final Holiday Push, UPS(UPS) Grabs Its Accountants to Deliver Packages. Parcel giant works to clear problems caused by surge of e-commerce orders coupled with tight market for seasonal workers.

• One Thing Tax Overhaul Won’t Do? Simplify Corporate Taxes. ‘Just the fact that you’re adding two acronyms should tell you everything’.

• Bitcoin Plunges 25% in 24 Hours in a Cryptocurrency Market Rout. Digital currency has lost more than $120 billion of its total market value in less than a week. 

• Simple Steps for a Screen-Free Childhood. To get rid of phones and tablets, parents need to embrace untidiness, quiet time and not going out so much.

Barron's:

• Had bullish commentary on (AAPL), (FNSR), (QRVO), (CSCO), (PCG) and (WDC).

• Had bearish commentary on .

MarketWatch.com:

• Will a ‘Santa rally give a robust stock market an added lift? Stocks in midst of strongest 7-day period since 1950.

Fox News:

• ISIS atrocities on daily display in Mosul's morgue. (video)

CNBC:

• Kudlow: With this tax cut, Trump and the GOP are on the side of the growth angels.

• US officials say lethal weapons headed to Ukraine.

• Bitcoin buyer beware: The crypto carnage could continue, says a real currency strategist. (video)

• Top VC deals this week: Amazon buys Blink, Daimler backs an Uber competitor, Didi raises billions.

• The last person into a speculative frenzy such as bitcoin never gets out before it's too late.

• Luxury retailers poised to benefit from growing global wealth, says analyst. (video)

• Bank of America is giving some employees a $1,000 bonus, citing tax bill. (video)

Zero Hedge:

• Vegas Massacre Victims Must Wait A Year For More Clues About Shooter's Motive.

• Saudi Government Wants $6 Billion For al-Waleed's Freedom.

• Saudi General Reportedly Tortured To Death After Refusing To Fork Over His Fortune.

• Panic-Selling Turns To Buying-Scramble As Cryptocurrencies Recover Dramatically. (graph)

• FBI Deputy Director McCabe "Retiring" After "Trump Insurance Policy" Debacle.

• House Republicans Secretly Gathering Evidence To Launch Case Against DOJ and FBI: Report.

• China's Raging Against Dying Of The Light (Or Why Peak Employment Is Imminent).

• Mexico Suffers Deadliest Year Ever: Violence Hits Cabo, Tourist Havens.

• Bombshell Report Reveals Up To 30% Of Federal Inmates Are Illegal Immigrants.

• Facebook(FB) Handing Over More Info To US Government: "This Is What Facebook Was Designed To Do".

• Japan Births Plunge To Lowest Level Ever Recorded As "Celibacy Syndrome" Takes Its Toll.

• Welcome To The Age Of The Information-Industrial Complex.

• FBI Fires Suspected Leaker And Comey Ally James Baker.

• FBI Foils San Francisco Terror Plot By Islam Convert Using "Vehicle and Firearms".

• The 10 Most Interesting Predictions From 2018 Forecasts.

• How Facebook's(FB) Secret Unit Created Digital Propaganda Troll Armies To Influence Elections.

• In Victory For Trump, UN Imposes New North Korean Sanctions.

• Bitcoin Bloodbaths Most In 4 Years As Stocks, Bond Yields, & Bullion Bounce. (graph)

Business Insider:

• This map shows how ISIS has been almost completely wiped out.

• A certified financial planner explains just how risky of an investment bitcoin is. (video)

• Oil discoveries are at an all-time low — and the clock is ticking.

• Banks are looking to use artificial intelligence in almost every part of their business: Here's how it can boost profits.

• Bombshell investigation finds Vice and its employees paid at least $184,000 to settle four sexual misconduct claims.

• Trump rails against deputy FBI director Andrew McCabe, 'leakin James Comey,' and 'phony' Clinton investigation.