Morning Market Internals

NYSE Composite Index:

• Volume Running -8.3% Below 100-Day Average
• 8 Sectors Rising, 3 Sectors Declining
• 50.9% of Issues Advancing, 43.9% Declining
• 58 New 52-Week Highs, 32 New Lows
• 52.4% of Issues Above 200-day Moving Average
• Average 14-Day RSI 48.2%
• Vix 13.5 +.7%
• Total Put/Call 1.06 +14.0%
• TRIN/Arms 1.15 +10.7%

Friday Watch

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 82.25 -2.5 basis points. 

• Asia Pacific Sovereign CDS Index 11.0 +.5 basis point.

• Bloomberg Emerging Markets Currency Index 66.76 +.04%.

• FTSE 100 futures +.02%

• S&P 500 futures +.04%.

• NASDAQ 100 futures -.03%.

Morning Preview Links

Earnings of Note
Company/Estimate

Before the Open:

• (DE)/2.74

After the Close:

• None of note

Economic Releases 
10:00 am EST

• The Leading Index for July is estimated to rise +.4% versus a +.5% gain in June.

• Preliminary Univ. of Mich. Consumer Sentiment for August is estimated to rise to 98.0 versus 97.9 in July.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Eurozone CPI report could also impact trading today.

BOTTOM LINE:  Asian indices are higher, boosted by financial 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 Surging into Final Hour on Diminished Trade War Fears, Less European/Emerging Markets Debt Angst, Earnings Optimism, Financial/Telecom Sector Strength

 Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 13.24 -9.63%

• Euro/Yen Carry Return Index 131.09 +.29%

• Emerging Markets Currency Volatility(VXY) 12.27 -2.0%

• S&P 500 Implied Correlation 31.24 -7.51%

• ISE Sentiment Index 108.0 -12.2%
  

• Total Put/Call .93 -19.13%

• NYSE Arms 1.30 -13.77%

Credit Investor Angst:

• North American Investment Grade CDS Index 61.76 -.76%
  

• America Energy Sector High-Yield CDS Index 406.0 +2.02%

• European Financial Sector CDS Index 85.68 -3.86%

• Italian/German 10Y Yld Spread 279.75 -6.75 basis points
  

• Asia Pacific Sovereign Debt CDS Index 11.08 +4.93%

• Emerging Market CDS Index 204.0 -3.16%
  

• iBoxx Offshore RMB China Corporate High Yield Index 151.04 +.10%

• 2-Year Swap Spread 20.25 +1.25 basis points

• TED Spread 25.75 +.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -9.25 +.75 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 66.72 +.40%
• 3-Month T-Bill Yield 2.06% unch.

• Yield Curve 25.25 +.25 basis point

• China Iron Ore Spot 66.56 USD/Metric Tonne -.36%

• Citi US Economic Surprise Index -13.30 -7.1 points

• Citi Eurozone Economic Surprise Index -17.50 +1.1 points

• Citi Emerging Markets Economic Surprise Index -8.30 -1.0 point

• 10-Year TIPS Spread 2.09 unch.
  
• 92.3% chance of Fed rate hike at Nov. 8th meeting, 97.9% chance at Dec. 19th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +113 open in Japan 
• China A50 Futures: Indicating +63 open in China

• DAX Futures: Indicating -8 open in Germany

Portfolio: 

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

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

• Market Exposure: Moved to 100% Net Long

Bear Radar

Style Underperformer:

• Large-Cap Growth +.8%

Sector Underperformers:

• 1) Gold & Silver -.9% 2) Steel -.1% 3) Shipping -.1%

Stocks Falling on Unusual Volume: 

• QIWI, GNL, DDS, IIN, SPTN, NANO, IVC and ALDR

Stocks With Unusual Put Option Activity:

• 1) JCP 2) MO 3) FL 4) MTZ 5) DBD

Stocks With Most Negative News Mentions:

• 1) SPTN 2) JCP 3) TTPH 4) NANO 5) CHK

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Growth +1.1%

Sector Outperformers:

• 1) Networking +1.8% 2) Homebuilding +1.8% 3) Telecom +1.7%

Stocks Rising on Unusual Volume:

• IEFA, PDD, WMT, WUBA, IYZ, GSKY, HIBB, SYMC, JD, RMAX, LFVN, PETQ, EGN, SNY, EHTH, CSCO, AMC, OSTK, ABCD, FANG, GTT, NOBL, BZUN, MSG, SCHN, SBNY, HIBB, AMC, BA, CNDT and BGG

Stocks With Unusual Call Option Activity:

• 1) PPL 2) BPY 3) WMT 4) XRT 5) CSCO

Stocks With Most Positive News Mentions:

• 1) WMT 2) CMTA 3) CSCO 4) CACI 5) REGN

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -.9% Below 100-Day Average
• 11 Sectors Rising, 0 Sectors Declining
• 76.9% of Issues Advancing, 19.8% Declining
• 54 New 52-Week Highs, 30 New Lows
• 49.7% of Issues Above 200-day Moving Average
• Average 14-Day RSI 46.3%
• Vix 13.2 -9.6%
• Total Put/Call 1.07 -7.0%
• TRIN/Arms .97 -35.7%