Bear Radar

Style Underperformer:

•   Small-Cap Growth +.6%

Sector Underperformers:

• 1) Steel -1.5% 2) Biotech -.6% 3) Gold & Silver -.3%

Stocks Falling on Unusual Volume: 

• BIDU, FITB, BEDU, JNCE, ABEO, EGOV and COOL

Stocks With Unusual Put Option Activity:

• 1) WHR 2) QEP 3) NTAP 4) STI 5) AMTD

Stocks With Most Negative News Mentions:

• 1) APPF 2) CPB 3) PRTA 4) BIDU 5) MDSO

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Value +.9%

Sector Outperformers:

• 1) Industrials +1.5% 2) Road & Rail +1.3% 3) Gaming +1.3%

Stocks Rising on Unusual Volume:

• MBFI, LHO, WAB, WHR, CAF, CQH, FNHC, AYR, FMBI, KELYA, CVRR, DDS, TITN, AZUL, FGEN, UFI, PARR, CBPO, DE, NICE, NOAH, GPRK, NEWR, LXFR, ATRA, ENR, YRCW, BPT, CCXI, PRO, EROS and DRH

Stocks With Unusual Call Option Activity:

• 1) WHR 2) CPB 3) FITB 4) PHM 5) CCL

Stocks With Most Positive News Mentions:

• 1) MU 2) DE 3) DDS 4) AYX 5) UTX

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -7.2% Below 100-Day Average
• 9 Sectors Rising, 2 Sectors Declining
• 66.0% of Issues Advancing, 30.0% Declining
• 139 New 52-Week Highs, 26 New Lows
• 47.1% of Issues Above 200-day Moving Average
• Average 14-Day RSI 50.1%
• Vix 13.0 -3.1%
• Total Put/Call .77 -23.0%
• TRIN/Arms 1.09 -31.5%

Monday Watch

Today's Headlines

Bloomberg: 

• U.S. Puts Tariffs Against China ‘On Hold,’ Mnuchin Says. The Trump administration won’t impose tariffs on Chinese products for now, after the two nations made progress on trade issues during two days of talks, Treasury Secretary Steven Mnuchin said. “We’re putting the trade war on hold. So right now, we have agreed to put the tariffs on hold while we try to execute the framework,” Mnuchin said on “Fox News Sunday.” President Donald Trump has threatened to impose tariffs on as much as $150 billion in Chinese imports to punish Beijing for allegedly violating American intellectual property and unfair trade practices. China vowed to retaliate with tariffs on everything from soybeans to airplanes. 

• Robot at $390 Billion Nordea Wealth Unit Has Big Plans. 

• Stock Futures Climb on U.S.-China Trade War Pause. Asian stocks are set to start the week higher and U.S. equity futures jumped after U.S. Treasury Secretary Steven Mnuchin said the Trump administration won’t impose tariffs on Chinese products for now. Japanese futures rose in Chicago while S&P 500 contracts gained 0.7 percent, an unusually large gain for early Asian trading. Oil futures also climbed. Mnuchin said the U.S. was “putting the trade war on hold,” amid progress in talks between the two nations. Stocks had closed lower Friday and Treasury yields dropped under 3.1 percent amid mixed signals on trade. Nikkei 225 futures up 0.4% in Chicago. S&P 500 futures up 0.7%.

• Five Things You Need to Know to Start Your Day.

Wall Street Journal:

• U.S. Government Bonds Pay More Than Debt From Other Developed Nations.

• Split in Goods and Services Inflation Underscores Fed’s Challenge.

• Behind a Hedge Fund’s Billion-Dollar Bet on Busted Oil Firms.

• The Mystery of the Small-Cap Rally.

Fox News:

• Trump wants DOJ to probe whether feds infiltrated 2016 campaign -- and if Obama WH asked for it.

CNBC:

• New incentives for hospitals are improving quality of care for patients at home.

• Small cap stocks are in the ‘early innings’ of a record run, a Wall Street veteran says.

• More states are starting tax-advantaged savings accounts aimed at first-time home buyers. 

• How hundreds of apps can empower stalkers to track their victims.

Zero Hedge:   

• Trump Erupts In Angry Tweetstorm: "When Does This Witch Hunt STOP", Slams Hillary, Podesta.

• These Are The Top 50 Hedge Fund Long And Short Positions.

• Mueller To Wrap Up Trump Obstruction Probe By Sept. 1: Giuliani.

• Trump To Order Probe Into FBI, DOJ Surveillance Of His Campaign.

• Mnuchin: US-China Trade War "On Hold", But NAFTA Still "Far Apart".

• Thousands In Sweden Have Implanted Microchips Under Their Skin.

• Brussels Rises In Revolt Against Washington: A Turning Point In US-European Relations. 

• National Economic Disparity Could Spell Political Shifts.

Business Insider:

• Oil hit $80 but OPEC isn't about to start ramping up production.

Telegraph:

• Why Italy could yet blow the Euro and European Union apart.

Night Trading

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

• Asia Ex-Japan Investment Grade CDS Index 75.5 -.25 basis point.

• Asia Pacific Sovereign CDS Index 13.0 unch.

• Bloomberg Emerging Markets Currency Index 70.98 +.01%.

• FTSE 100 futures +.39%.

• S&P 500 futures +.64%.

• NASDAQ 100 futures +.81%.

Morning Preview Links

Earnings of Note

Company/Estimate
Before the Open:

• (MNRO)/.50

After the Close:

• (NDSN)/1.43 

Economic Releases
8:30 am EST

• The Chicago Fed National Activity Index for April.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Fed's Bostic speaking, Fed's Kashkari speaking, Fed's Harker speaking, Treasury Deadline for China Investment Restrictions, Barclays High-Yield Bond Conference, UBS Oil/Gas Conference, UBS Healthcare Conference, (MU) analyst event and the (MNRO) investor day could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by technology and consumer shares in the region. I expect US stocks to open modestly higher and to maintain gains into the afternoon.  The Portfolio is 75% net long heading into the week.

Weekly Outlook

• Wall St. Week Ahead by Reuters. 

• Weekly Market Outlook by Yahoo. (video)

• Week Ahead by TheStreet.

• Stocks to Watch Next Week by Seeking Alpha.

• Weekly Economic Calendar by Briefing.com.

BOTTOM LINE: I expect US stocks to finish the week modestly higher on less European/Emerging Markets/US High-Yield debt angst, economic optimism, short-covering, less trade war rhetoric, diminishing Mueller probe worries and stable long-term rates. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 75% net long heading into the week.

Today's Headlines

Bloomberg:

• China to `Significantly' Boost U.S. Purchases After Trade Talks. China will “significantly increase purchases” of U.S. goods and services, the White House said in a joint statement following talks aimed at resolving a trade dispute between the world’s two largest economies. Vice Premier Liu He, a special envoy of China’s President Xi Jinping, held talks in Washington on Thursday and Friday, termed “constructive consultations,” with U.S. officials including Treasury Secretary Steven Mnuchin, Secretary of Commerce Wilbur Ross and U.S. Trade Representative Robert Lighthizer. China agreed to “meaningful increases in U.S. agriculture and energy exports,” the White House said, adding that the U.S. will send a team to China to work out the details.

• Gold Bulls Push for the Exits on Strong Dollar and Lack of Fear.

• Weidmann Signals Openness to Succeeding Draghi as ECB President. 
  

• Greece Moves Closer to Bailout Exit After Deal With Creditors.

• Fosun Eyes Acquisitions in North America.

Wall Street Journal:

• 50 Ways to Have a Superior Summer.

• TV Salivates Over Potential of Sports Betting to Boost Viewers and Ads. 

• Goldman Sachs-Backed Firm Seeks Industrial Deals. 

• House Rejects Farm Bill as Some Conservatives Withhold Support.

Barron's:

• Had bullish commentary on (KO), (CBS), (XLE), (BZUN), (PEP) and (PG).

• Had bearish commentary on .

MarketWatch.com:

• Bitcoin briefly slips under $8,000, near one-month low with 2nd weekly drop in sight.

Fox News:

• Police: Texas shooting suspect called quiet, was dancer in church group.

CNBC: 

• China lands bomber on South China Sea island for first time.

• China agrees to bolster purchases of US goods, in a move to 'substantially reduce' trade gap.

• Inside the training camp where Google shares its A.I. secrets with Alphabet-invested companies.

Zero Hedge:

• FBI Spy-Op Exposed, Trump Campaign Infiltrated By Longtime CIA And MI6 Asset.

• "It's Over" - Biggest 'Russiagate' Cheerleaders Start Covering Their Tracks.

• Krugman Cries Treason After Stefan Halper Outed As FBI Infiltrator, There's Just One Problem...

• The Second Quarter Has Been One Giant Short Squeeze.

• Why Are So Many People Moving Out Of California?

• IG Horowitz Finds FBI, DOJ Broke Law In Clinton Probe, Refers To Prosecutor For Criminal Charges.

• In Which US States Was The Middle Class Crushed The Most?

• The Most Prosperous Cities In The US Are...

Business Insider:

• Tesla's(TSLA) Autopilot used to be a huge advantage for the company— but now it's becoming a problem.

• Here are the first photos of Prince Harry and Meghan Markle as a married couple.

The Telegraph:

• Comment: Brexit has become a farce, risking an outcome that will satisfy no one.