Bear Radar

Style Underperformer:

• Small-Cap Growth -1.6%

Sector Underperformers:

• 1) Gaming -3.5% 2) Semis -2.8% 3) Robotics -2.4%

Stocks Falling on Unusual Volume: 

• LMAT, CUTR, PDI, IPGP, DLPH, PENN, COST, SFIX, ASGN, ILMN, COMM, ARNA, NWL, ASMB, ERI, COHR, IIVI, ALRM, LITE, SMCI, SGMS, ADMS and ARCB

Stocks With Unusual Put Option Activity:

• 1) AMJ 2) FMC 3) RSX 4) ADI 5) NWL

Stocks With Most Negative News Mentions:

• 1) LMAT 2) DLPH 3) SMCI 4) ADMS 5) CUTR

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Value -.3%

Sector Outperformers:

• 1) Utilities +1.2% 2) REITs +.3% 3) Papers +.2%

Stocks Rising on Unusual Volume:

• SGH, ATRC, VBTX, CHEF, SIR, PYX, NOA, GNBC, IIPR, CP, TREE, KB, SERV, LLY, ISCA, NVO, ILPT, HSIC, BOLD, CHL, NBLX and COLL

Stocks With Unusual Call Option Activity:

• 1) BKS 2) GOV 3) NWL 4) TPX 5) PYX

Stocks With Most Positive News Mentions:

• 1) SGH 2) EMKR 3) CP 4) QNST 5) AMMX

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -6.2% Below 100-Day Average
• 6 Sectors Rising, 5 Sectors Declining
• 49.4% of Issues Advancing, 47.1% Declining
• 19 New 52-Week Highs, 218 New Lows
• 44.1% of Issues Above 200-day Moving Average
• Average 14-Day RSI 42.4%
• Vix 14.3 +.6%
• Total Put/Call .92 -13.2%
• TRIN/Arms .67 +38.3%

Friday Watch

Night Trading 

• Asian equity indices are -1.0% to -.5% on average.
• Asia Ex-Japan Investment Grade CDS Index 81.75 +1.75 basis points. 
• Asia Pacific Sovereign CDS Index 9.75 +.5 basis point.
• Bloomberg Emerging Markets Currency Index 66.0 -.02%.
• FTSE 100 futures -1.26%.
• S&P 500 futures +.03%.
• NASDAQ 100 futures +.01%.

Morning Preview Links

Earnings of Note
Company/Estimate

Before the Open:

• None of note

After the Close:

• None of note

Economic Releases

8:30 am EST

• The Trade Deficit for August is estimated at -$53.6B versus -$50.1B in July.
• The Change in Non-Farm Payrolls for September is estimated to fall to 185K versus 201K in August.
•  The Unemployment Rate for September is estimated to fall to 3.8% versus 3.9% in August.
• Average Hourly Earnings MoM for September is estimated to rise +.3% versus a +.4% gain in August.
  

3:00 pm EST

• Consumer Credit for August is estimated at $15.0B versus $16.64B in July.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Fed's Bostic speaking and German Factory Orders report could also impact trading today.

BOTTOM LINE:  Asian indices are lower, weighed down by technology and industrial shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed.  The Portfolio is 50% net long heading into the day.

Stocks Lower into Final Hour on Fed Rate-Hike Worries, Emerging Market Currency/Debt Angst, Oil Decline, Tech/Biotech Sector Weakness

 Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 15.65 +34.8%

• Euro/Yen Carry Return Index 136.23 -.35%

• Emerging Markets Currency Volatility(VXY) 10.73 +4.17%

• S&P 500 Implied Correlation 35.39 +2.9%

• ISE Sentiment Index 59.0 -42.72%
  

• Total Put/Call 1.07 +27.4%

• NYSE Arms .59 -6.3%

Credit Investor Angst:

• North American Investment Grade CDS Index 59.02 +.06%
  

• America Energy Sector High-Yield CDS Index 381.0 +.97%

• European Financial Sector CDS Index 85.32 +.5%

• Italian/German 10Y Yld Spread 279.75 -4.0 basis points
  

• Asia Pacific Sovereign Debt CDS Index 9.69 +5.21%

• Emerging Market CDS Index 208.05 +6.46%
  

• iBoxx Offshore RMB China Corporate High Yield Index 150.57 -.09%

• 2-Year Swap Spread 17.25 +1.0 basis point

• TED Spread 19.0 +1.5 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -39.75 unch.

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 65.94 -.78%
• 3-Month T-Bill Yield 2.21% -1.0 basis point

• Yield Curve 31.75 +2.25 basis points

• China Iron Ore Spot 68.25 USD/Metric Tonne -.19%

• Citi US Economic Surprise Index 11.1 +2.3 points

• Citi Eurozone Economic Surprise Index -33.6 +.4 point

• Citi Emerging Markets Economic Surprise Index -10.3 -.4 point

• 10-Year TIPS Spread 2.17 unch.
• 77.1% chance of Fed rate hike at Dec. 19th meeting, 78.7% chance at Jan. 30th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -230 open in Japan 
• China A50 Futures: Indicating -533 open in China

• DAX Futures: Indicating -33 open in Germany

Portfolio: 

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

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my emerging market shorts

• Market Exposure: Moved to 50% Net Long

Bear Radar

Style Underperformer:

• Large-Cap Growth -1.9%

Sector Underperformers:

• 1) Biotech -3.2% 2) Social Media -2.8% 3) Alt Energy -2.7%

Stocks Falling on Unusual Volume: 

• MNR, ARWR, RTEC, NVO, LGIH, VNET, MNK, LYV, MCHP, AMCX, INGN, SLDB, LGIH, ASMB and SMCI

Stocks With Unusual Put Option Activity:

• 1) EMB 2) S 3) NOV 4) ADI 5) TPR

Stocks With Most Negative News Mentions:

• 1) RTEC 2) TEAM 3) AMRC 4) GPN 5) BID

Charts:

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