Bull Radar

Style Outperformer:

• Large-Cap Growth +.6%

Sector Outperformers:

• 1) Tobacco +4.4% 2) Oil Service +1.6% 3) Homebuilders +1.6%

Stocks Rising on Unusual Volume:

• IDTI, AOI, PRQR, CASY, XL, SWIR, IBTX, AVRO, SONC, GLPG, EROS, GNRC, IGV, UNIT, NINE, PDD, ECYT, CDLX, BGSF, GTXI, NSTG, ATVI, URI, RUN and OKTA

Stocks With Unusual Call Option Activity:

• 1) UNIT 2) VMC 3) MET 4) PVTL 5) LEN

Stocks With Most Positive News Mentions:

• 1) SONC 2) CASY 3) BA 4) SNAP 5) ROKU

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -11.5% Below 100-Day Average
• 7 Sectors Rising, 4 Sectors Declining
• 42.7% of Issues Advancing, 52.1% Declining
• 51 New 52-Week Highs, 108 New Lows
• 50.9% of Issues Above 200-day Moving Average
• Average 14-Day RSI 46.3%
• Vix 14.2 +.3%
• Total Put/Call .96 -16.5%
• TRIN/Arms 1.09 -17.5%

Tuesday Watch

Evening Headlines

Bloomberg:

• Asia Futures Point to Mixed Open; Pound Advances. Asian stocks are set for a mixed start after their U.S. counterparts eked out modest gains amid lingering concerns on trade tensions. The dollar slipped while the pound rose on upbeat Brexit comments from the European Union’s chief negotiator. Equity futures advanced in Japan, fell in Hong Kong and China, and were little changed in Australia. The S&P 500 Index broke a four-day slide even as so-called FAANG stocks underperformed. U.S. Treasury 2-year yields climbed to the highest level in a decade amid comments from Atlanta Federal Reserve’s Raphael Bostic and positive consumer credit data. Ten-year Treasury yields ticked lower. Futures on the Nikkei 225 Stock Average rose 0.3 percent in Singapore. Futures on the FTSE China A50 fell 0.1 percent. Futures on Hong Kong’s Hang Seng Index lost 0.5 percent.  

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

• Semiconductor ETF Loses Record Cash Amid Global Chipmaker Rout.

Wall St. Journal:

• Peak China?

• U.S. Orders Closure of PLO Office in D.C.

Fox News:

• Hurricane Florence barrels toward US as SC orders evacuation of entire coast.

• Strzok-Page texts reveal 'coordinated' FBI leak strategy to harm Trump, GOP congressman says.

CNBC: 

• This chart shows the dramatic rise in corporate cash brought home since the tax cuts.

• Gene Munster: If Tesla doesn't overhaul the board right now, it could spell the end for the company

• AliveCor can now detect dangerous blood condition via heart signals, gets FDA 'breakthrough status'.

• Dow stock Home Depot just hit an all-time high as it trades in a 'sweet spot'. 

• After-hours buzz: SONO, NTNX & more.

Zero Hedge:

• New Strzok-Page Texts Discuss FBI "Media Leak Strategy" Within Hours Of Washington Post Bombshell.

• 1.3 Million Ordered To Evacuate As "Nightmare" Hurricane Florence Bears Down On Carolinas.

• US Consumer Credit Hits All Time High As Credit Card Usage Stalls.

• Twitter Suspends Benghazi Hero After He Excoriates Obama.

• Trump Weighing Sanctions On Chinese Officials, Seizure And Freezing Of Chinese Assets.

• "Tax Reform 2.0": Republicans Unveil Second Round Of Proposed Tax Cuts.

• New York City Transforms Into A Retail Wastelend.

• FANG-Less Stocks Drift Aimlessly As Trade War Tensions Loom.

Night Trading 

• Asian equity indices are unch. to +.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 81.25 unch. 

• Asia Pacific Sovereign CDS Index 12.75 +.25 basis point

• Bloomberg Emerging Markets Currency Index 65.13 -.03%.

• FTSE 100 futures +.03%.

• S&P 500 futures unch.

• NASDAQ 100 futures +.05%.

Morning Preview Links

Earnings of Note
Company/Estimate
Before the Open:

• (USAT)/.03

After the Close:

• None of note

Economic Releases

6:00 am EST

• The NFIB Small Business Optimism Index for August is estimated to rise to 108.0 versus 107.9 in July.

10:00 am EST

• JOLTS Job Openings for July are estimated to rise to 6675 versus 6662 in June. 

• Wholesale Trade Sales MoM for July are estimated to rise +.1% versus a -.1% decline in June.

Upcoming Splits

• None of note

Other Potential Market Movers

• The German ZEW Index, weekly US retail sales reports, $35B 3Y T-Note auction and the (NXPI) analyst day could also impact trading today.

BOTTOM LINE:  Asian indices are modestly higher, boosted by technology and industrial shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower.  The Portfolio is 75% net long heading into the day.

Stocks Mostly Higher into Final Hour on Less European Debt Angst, Economic Optimism, Technical Buying, Transport/Gaming Sector Strength

 Broad Equity Market Tone:

• Advance/Decline Line: Slightly Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 14.10%

• Euro/Yen Carry Return Index 134.11 +.47%

• Emerging Markets Currency Volatility(VXY) 12.91 +.16%

• S&P 500 Implied Correlation 29.34 -7.06%

• ISE Sentiment Index 107.0 -4.46%
  

• Total Put/Call 1.17 +.86%

• NYSE Arms 1.32 +88.4%

Credit Investor Angst:

• North American Investment Grade CDS Index 57.84 -3.35%
  

• America Energy Sector High-Yield CDS Index 418.0 -.57%

• European Financial Sector CDS Index 71.04 -5.25%

• Italian/German 10Y Yld Spread 264.75 -5.5 basis points
  

• Asia Pacific Sovereign Debt CDS Index 12.75 +1.84%

• Emerging Market CDS Index 229.27 +1.19%
  

• iBoxx Offshore RMB China Corporate High Yield Index 151.42 unch.

• 2-Year Swap Spread 18.75 -.25 basis point

• TED Spread 19.75 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -11.75 -.5 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 65.17 -.28%
• 3-Month T-Bill Yield 2.12% -1.0 basis point

• Yield Curve 22.5 -1.25 basis points

• China Iron Ore Spot 67.17 USD/Metric Tonne -1.18%

• Citi US Economic Surprise Index -4.8 -1.2 points

• Citi Eurozone Economic Surprise Index -4.3 -.4 point

• Citi Emerging Markets Economic Surprise Index -4.40 +2.1 points

• 10-Year TIPS Spread 2.10 -1.0 basis point
• 96.4% chance of Fed rate hike at Nov. 8th meeting, 99.1% chance at Dec. 19th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -48 open in Japan 
• China A50 Futures: Indicating +3 open in China

• DAX Futures: Indicating +9 open in Germany

Portfolio: 

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

• Disclosed Trades: None

• Market Exposure: 75% Net Long

Today's Headlines

Bloomberg:    

• EU’s Barnier Says Brexit Deal With U.K. ‘Realistic’ in 6-8 Weeks; Pound Surges.

• Crypto Wipeout Deepens to $640 Billion as Ether Leads Declines.

• Americans Haven’t Felt This Good About Income Growth Since 2001.  

• Emerging-Market Rout Takes Aim at India Amid Widening Deficit.  

• The Campaign Against Europe Just Got a Boost From Swedish Voters.   

• Funding for ICOs Drops to the Lowest in 16 Months.   

• Nomura Quant Says Hedge Funds Are Poised to Gorge on Leverage.

Wall Street Journal:  

• Borrowers Struggle to Raise Funds as Emerging Markets Tumble.

• Brain Data Could Read Moods, Potentially Treat Depression.

• Four States Could Determine Control of House.

• The Financial Crisis: 10 Years Later.

• Explore the Full WSJ/THE College Rankings.

MarketWatch.com:

• Cryptos are a big joke, says financial analyst Wolf Richter.

• Trends in app downloads could bode well for these tech companies.

Fox News:

• Trump admin shuts down Palestinian offices in Washington after group accuses Israel of war crimes.

• Trump mocks Obama over 'magic wand' remark as economy booms.

CNBC:   

• Even if you bought the market the day before Lehman collapsed you'd still be up a whopping 130%.  

• What to expect from Apple's big iPhone event on Wednesday.

• The best and worst college majors for your money.

• Apple(AAPL) supplier shares slide after Trump tells the tech giant to make its products in the US.

Zero Hedge: 

• Key Events This Week: "Super Thursday", Inflation, Trade War And More

• Trump: 'GDP Growth Eclipses Unemployment For 1st Time In 100 Years' 

• Fed Should Buy Stocks In The Next Recession: Former IMF Chief Economist.

• Pound Surges After Barnier Says Brexit Deal "Realistic" In 6-8 Weeks.

• Primetime NFL Ratings Down 9% As Trump Trashes Kneelers.

• Hurricane Florence "Nightmare Scenario" Could Be "Worst Natural Disaster" For Carolinas And Virginia.

• "New Deals Are Being Canceled": Emerging Markets Increasingly Locked Out From Access To Capital.