Morning Market Internals

NYSE Composite Index:

• Volume Running -11.9% Below 100-Day Average
• 10 Sectors Rising, 1 Sector Declining
• 41.6% of Issues Advancing, 53.5% Declining
• 30 New 52-Week Highs, 28 New Lows
• 42.6% of Issues Above 200-day Moving Average
• Average 14-Day RSI 48.6%
• Vix 18.2 -1.7%
• Total Put/Call 1.1 +10.0%
• TRIN/Arms .99 +20.7%

Friday Watch

Night Trading 

• Asian equity indices are unch. to +.5% on average.
• Asia Ex-Japan Investment Grade CDS Index 76.75 unch. 
• Asia Pacific Sovereign CDS Index 12.5 unch.
• Bloomberg Emerging Markets Currency Index 74.58 +.04%.
• FTSE 100 futures -.11%.
• S&P 500 futures -.28%.
• NASDAQ 100 futures -.27%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (C)/1.60
• (JPM)/2.29
• (WFC)/1.07

Economic Releases

10:00 am EST

• JOLTS Job Openings for February are estimated to fall to 6000 versus 6312 in January.
• Preliminary Univ. of Mich. Consumer Sentiment for April is estimated to fall to 100.5 versus 101.4 in March.

Upcoming Splits

• None of note

Other Potential Market Movers

• The Fed's Kaplan speaking, Fed's Bullard speaking, Fed's Rosengren speaking and the China Trade Data report 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 75% net long heading into the day.

Stocks Surging into Final Hour on Diminishing Trade War Fears, Earnings Optimism, Oil Gain, Transport/Financial Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 18.7 -7.9%

• Euro/Yen Carry Return Index 137.65 +.09%

• Emerging Markets Currency Volatility(VXY) 8.39 -.59%

• S&P 500 Implied Correlation 47.1 -3.6%

• ISE Sentiment Index 101.0 -10.6%
  

• Total Put/Call 1.02 +7.4%

• NYSE Arms .71 -35.46%

Credit Investor Angst:

• North American Investment Grade CDS Index 62.08 -2.0%
  

• America Energy Sector High-Yield CDS Index 437.0 +.08%

• European Financial Sector CDS Index 59.13 -2.1%

• Italian/German 10Y Yld Spread 130.0 -.5 basis point
  

• Asia Pacific Sovereign Debt CDS Index 12.55 +.92%

• Emerging Market CDS Index 139.27 -1.33%
  

• iBoxx Offshore RMB China Corporate High Yield Index 149.11 +.16%

• 2-Year Swap Spread 31.0 +1.5 basis points

• TED Spread 61.0 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -7.75 -2.75 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 74.58 -.01%
• 3-Month T-Bill Yield 1.74% +1.0 basis point
  

• Yield Curve 48.0 unch.

• China Iron Ore Spot 64.28 USD/Metric Tonne +.31%

• Citi US Economic Surprise Index 28.30 -3.0 points

• Citi Eurozone Economic Surprise Index -89.20 -1.0 point

• Citi Emerging Markets Economic Surprise Index 17.6 -1.5 points

• 10-Year TIPS Spread 2.13 +2.0 basis points
  
• 87.2% chance of Fed rate hike at June 13 meeting, 87.9% chance at August 1 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +170 open in Japan 
• China A50 Futures: Indicating +110 open in China

• DAX Futures: Indicating +7 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 100% Net Long

Bear Radar

Style Underperformer:

• Mid-Cap Value +.3%

Sector Underperformers:

• 1) Homebuilders -1.6% 2) Utilities -1.2% 3) REITs -1.1%

Stocks Falling on Unusual Volume: 

• APOG, BBBY, NEWA, COOL, DQ, AGX, MNK, LB and DK

Stocks With Unusual Put Option Activity:

• 1) BBBY 2) DOV 3) PH 4) MNK 5) NRG

Stocks With Most Negative News Mentions:

• 1) BKE 2) VHC 3) DVN 4) TSLA 5) PAYC

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Growth +1.2%

Sector Outperformers:

• 1) Gaming +3.3% 2) Airlines +2.1% 3) Banks +2.0%

Stocks Rising on Unusual Volume:

• MFGP, DBX, CLDR, SJR, SELB, CBI, QNST, ESND, NHTC, OZRK, RTRX, SMTC, NVEE, OMEX, DGLD, LTXB, HLG, HST, MDGL, MLCO, AVXS, USG, KPTI, INN, BOLD, PENN and AMKR

Stocks With Unusual Call Option Activity:

• 1) MAC 2) BHGE 3) BBBY 4) HOG 5) DBX

Stocks With Most Positive News Mentions:

• 1) QNST 2) BLCM 3) INCY 4) DAL 5) COMM

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -16.3% Below 100-Day Average
• 8 Sectors Rising, 3 Sectors Declining
• 57.4% of Issues Advancing, 39.0% Declining
• 43 New 52-Week Highs, 23 New Lows
• 41.8% of Issues Above 200-day Moving Average
• Average 14-Day RSI 48.1%
• Vix 18.9 -6.6%
• Total Put/Call .92 -3.16%
• TRIN/Arms .97 -11.9%