Morning Market Internals

NYSE Composite Index:

• Volume Running +18.2% Above 100-Day Average
• 3 Sectors Rising, 6 Sectors Declining
• 21.6% of Issues Advancing, 74.9% Declining
• 3 New 52-Week Highs, 138 New Lows
• 41.4% of Issues Above 200-day Moving Average
• Average 14-Day RSI 41.4%
• Vix 25.81 +14.9%
• Total Put/Call 1.22 -5.43%
• TRIN/Arms .76 -35.75%

Friday Watch

Night Trading 

• Asian equity indices are -1.75% to -.75% on average.
• Asia Ex-Japan Investment Grade CDS Index 69.50 +1.0 basis point. 
• Asia Pacific Sovereign CDS Index 12.0 unch.
• Bloomberg Emerging Markets Currency Index 75.22 -.01%.
• FTSE 100 futures -.63%.
• S&P 500 futures -.17%.
• NASDAQ 100 futures -.11%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (FL)/1.25
• (JCP)/.47
• (JD)/.42
• (KVHI)/.11
• (ZEUS)/.11

Economic Releases

10:00 am EST

• Final Univ. of Mich. Consumer Sentiment for February is estimated to fall to 99.5 versus a prior estimate of 99.9.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Eurozone PPI report, BofA Merrill Refining Conference, (GRA) Investor Day and the (ETN) Investor Conference could also impact trading today.

BOTTOM LINE:  Asian indices are lower, weighed down by industrial and technology shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower.  The Portfolio is 25% net long heading into the day.

Stocks Reversing Sharply Lower into Final Hour on Trade War Fears, Yen Strength, Technical Selling, Medical/Gaming Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Heavy

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 24.4 +22.8%

• Euro/Yen Carry Return Index 135.46 -.02%

• Emerging Markets Currency Volatility(VXY) 8.23 +2.24%

• S&P 500 Implied Correlation 42.94 +1.9%

• ISE Sentiment Index 65.0 -21.69%
  

• Total Put/Call 1.28 +19.6%

• NYSE Arms 1.40 -14.4%

Credit Investor Angst:

• North American Investment Grade CDS Index 57.59 +2.85%
  

• America Energy Sector High-Yield CDS Index 389.0 +3.79%

• European Financial Sector CDS Index 54.17 +2.51%

• Italian/German 10Y Yld Spread 130.25 -1.5 basis points
  

• Asia Pacific Sovereign Debt CDS Index 12.11 -.21%

• Emerging Market CDS Index 126.79 +3.91%
  

• iBoxx Offshore RMB China Corporate High Yield Index 147.95 +.02%

• 2-Year Swap Spread 26.0 -2.5 basis points

• TED Spread 36.25 +3.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -33.75 -.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 75.17 -.11%

• 3-Month T-Bill Yield 1.62% -4.0 basis points
  

• Yield Curve 60.0 -1.25 basis points

• China Iron Ore Spot 75.75 USD/Metric Tonne -1.98%

• Citi US Economic Surprise Index 39.50 +6.6 points

• Citi Eurozone Economic Surprise Index .2 -2.2 points

• Citi Emerging Markets Economic Surprise Index 7.30 -.6 point

• 10-Year TIPS Spread 2.10 -2.0 basis points
  

• 100.0% chance of Fed rate hike at May 2 meeting, 100.0% chance at June 13 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -624 open in Japan 

• China A50 Futures: Indicating -229 open in China

• DAX Futures: Indicating -151 open in Germany

Portfolio: 

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

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges, then covered some of them

• Market Exposure: 50% Net Long

Bear Radar

Style Underperformer:

• Large-Cap Growth -1.1%

Sector Underperformers:

• 1) Medical Equipment -2.2% 2) Gaming -1.9% 3) Semis -1.8%

Stocks Falling on Unusual Volume: 

• PTLA, WAGE, PDCO, CORI, BOX, EPR, MNST, WPP, LB, ALB, ACAD, DERM, KSS, TPC and CCRN

Stocks With Unusual Put Option Activity:

• 1) QEP 2) AXL 3) BOX 4) ILG 5) AABA

Stocks With Most Negative News Mentions:

• 1) PTLA 2) CCRN 3) PDCO 4) VRX 5) OSTK

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Value +.1%

Sector Outperformers:

• 1) Coal +1.4% 2) Steel +1.2% 3) Oil Service +.8%

Stocks Rising on Unusual Volume:

• AFSI, AAXN, FDX, ILG, HIIQ, AXGN, REPH, MDB, X, BBY, FLY, SSYS, DDD, WBAI, BID, CRM, PGTI, TWNK, BUD, COT, UBNT, BSTI, PRFT, AKRX, BLDR, AFSI, MDCO, CENX, BC, GKOS, BBY, FOLD, PRAA and LSXMA

Stocks With Unusual Call Option Activity:

• 1) QEP 2) A 3) BOX 4) CRC 5) BBY

Stocks With Most Positive News Mentions:

• 1) DDD 2) NVAX 3) BBY 4) ITRI 5) CSX

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +20.3% Above 100-Day Average
• 4 Sectors Rising, 6 Sectors Declining
• 48.7% of Issues Advancing, 48.1% Declining
• 14 New 52-Week Highs, 122 New Lows
• 42.6% of Issues Above 200-day Moving Average
• Average 14-Day RSI 42.3%
• Vix 21.12 +6.4%
• Total Put/Call 1.13 +5.6%
• TRIN/Arms 1.25 -21.7%