Bull Radar

Style Outperformer:

• Large-Cap Value +.85%

Sector Outperformers:

• 1) Homebuilders +2.0% 2) Steel +2.0% 3) Utilities +2.0%

Stocks Rising on Unusual Volume:

• PCG, SONO, BAK, NGVC, SCVL, BABY, CSIQ, EIX, CWEN, DDS, SSTI, ARNA, SGEN, HAYN, VCRA, WVE, CNCE, ESE, POST, TRN, HCCI, MATW, CRMT, ADSW, ZAYO and EOG

Stocks With Unusual Call Option Activity:

• 1) ADP 2) XME 3) JWN 4) PZZA 5) XLNX

Stocks With Most Positive News Mentions:

• 1) EIX 2) PRMW 3) UHS 4) AGIO 5) VIAB

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +13.8% Above 100-Day Average
• 7 Sectors Rising, 4 Sectors Declining
• 42.6% of Issues Advancing, 54.7% Declining
• 28 New 52-Week Highs, 123 New Lows
• 28.2% of Issues Above 200-day Moving Average
• Average 14-Day RSI 44.5%
• Vix 19.7 -1.5%
• Total Put/Call .98 +15.3%
• TRIN/Arms .98 +40.0%

Friday Watch

Evening Headlines

Bloomberg:              

• Trump and Xi Likely to Get Only Framework Trade Deal, Ross Says. 

• Asia Stocks Edge Higher; Brexit Slams Pound. Asian equities rounded out the week with muted gains following a rally in U.S. stocks as investors gauge whether China and the U.S. can de-escalate their trade spat before the G-20 summit later this month. Stocks in Japan ticked higher, Australian shares climbed, and futures pointedto modest gains for equities in China and Hong Kong. While trade-sensitive industrial shares led the S&P 500 Index higher and tech stocks rebounded, U.S. futures fell in Asian trading after Nvidia Corp. gave a disappointing sales forecast and Commerce Secretary Wilbur Ross dampened hopes of any imminent U.S.-China deal. The pound held on to its plunge as Brexit again threw the U.K. government into turmoil. The dollar was little changed and Treasuries were steady. Oil held at about $57 a barrel in New York. Japan’s Topix index slid 0.1 percent as of 9:05 a.m. in Tokyo. FTSE China A50 futures gained 0.7 percent. Futures on Hong Kong’s Hang Seng added 0.2 percent. Australia’s S&P/ASX 200 Index advanced 0.1 percent. South Korea’s Kospi rose 0.2 percent. The S&P 500 Index gained 1.1 percent. Futures slid 0.3 percent. Nasdaq 100 futures slipped 0.6 percent.  

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

• Global Slowdown Looks More Likely in Trade Turmoil: Economy This Week.

Wall St. Journal:

• May Hit by Brexit Resignations, Posing Risk to Leadership.

• Doubling Down on Mueller.

• Trump Forged His Ideas on Trade in the 1980s—and Never Deviated.

• Saudis to Seek Death Penalty in Khashoggi Killing.

• Firm Tied to Cryptocurrency Entrepreneur Faces SEC Investigation.

MarketWatch.com:

• These two big catalysts could kick the sluggish bull market in stocks into high gear.

• Applied Materials stock falls after earnings, weak guidance.

Fox News:   

• Broward County misses machine recount deadline -- by 2 minutes; Scott claims miss was intentional.

CNBC:        

• Nordstrom(JWN) plunges after taking $72 million charge for customer credit card refunds. 

• Chipmaker Nvidia plunges after missing on revenue and guidance. 

• Cramer says CEOs are telling him off the record the economy has quickly cooled.

• A tech turnaround may hinge on this beaten-up group of stocks — and it's not FANG.  

• Economic troubles, Brexit and trade wars may affect travel companies, executives warn. 

• FDA restricts sales of most flavored e-cigarettes to curb 'astonishing' surge in teen vaping, pursues menthol ban.

Zero Hedge:

• "It Was All A Lie": Homeless Vet, NJ Couple Charged In $400,000 GoFundMe Grift.

• Assange Indictment By DOJ May Trigger Extradition To US, According To "Recent Developments".

• Why Are Wall Street Banks Fighting Over Gamers?

• Chicago PlayStation Users Furious They Must Now Pay A 9% "Amusement Tax".

• Here's Why PG&E, Which Was Just Downgraded By Moody's, Is Soaring After Hours.

• North Korea Testing New "High-Tech Tactical Weapon".

• Trump Understands The Important Difference Between Nationalism And Globalism.

• November Snow In Texas? Experts Warn Decreased Solar Activity Will Shatter All Global Climate Models.

• California's Deadliest Fire Now Blocking Sun; Temps Drop By 10 Degrees As "Hazardous" Air Chokes Residents.

• Florida Senate Race Heads To Manual Recount.  

• Shocking Nat Gas Price Swings Prompt "Emergency Action" By CME.

• Soros Responds To "Alarming" Facebook Exposé; Demands "Thorough Investigation".

• Stocks Swing On Headline Chaos As Cable Clobbered & Credit Cracked.

Business Insider:

• Surprise snowstorm slams East Coast forcing airlines to cancel hundreds of flights.

Telegraph:

• Comment: Watch the economy surge if a Brexit deal is delivered.

Night Trading 

• Asian equity indices are -.25% to +.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 91.50 -.5 basis point. 

• Asia Pacific Sovereign CDS Index 10.0 unch.

• Bloomberg Emerging Markets Currency Index 67.0 +.01%.

• FTSE 100 futures +.56%.

• S&P 500 futures -.38%.

• NASDAQ 100 futures -.84%.

Morning Preview Links

Earnings of Note
Company/Estimate
Before the Open:

• (FRO)/-.11

• (HP)/.18

• (VIAB)/.95

After the Close:

• None of note

Economic Releases

9:15 am EST

• Industrial Production MoM for October is estimated to rise +.2% versus a +.3% gain in September.

• Capacity Utilization for October is estimated to rise to 78.2% versus 78.1% in September.

• Manufacturing Production for October is estimated to rise +.2% versus a +.2% gain in September.

11:00 am EST

• The Kansas City Fed Manufacturing Activity Index for November is estimated to rise to 11.0 versus 8.0 in October.
  

4:00 pm EST

• Net Long-Term TIC Flows.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Fed's Evans speaking, Eurozone CPI report, (CTSH) investor day and the (FLR) investor day could also impact trading today.

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

Stocks Reversing Higher into Final Hour on Less Hawkish Fed Commentary, Diminished Trade War Fears, Technical Buying, Tech/Biotech Sector Strength

 Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Heavy

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 20.3 -4.7%

• Euro/Yen Carry Return Index 134.03 +.35%

• Emerging Markets Currency Volatility(VXY) 10.14 +.40%

• S&P 500 Implied Correlation 43.26 +2.12%

• ISE Sentiment Index 94.0 +14.6%
  

• Total Put/Call 1.07 -13.0%

• NYSE Arms .71 -26.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 73.16 +2.68%
  

• America Energy Sector High-Yield CDS Index 657.0 +1.64%

• European Financial Sector CDS Index 96.89 +5.97%

• Italian/German 10Y Yld Spread 313.25 +4.0 basis points
  

• Asia Pacific Sovereign Debt CDS Index 10.05 +.05%

• Emerging Market CDS Index 200.32 +.68%
  

• iBoxx Offshore RMB China Corporate High Yield Index 146.77 +.16%

• 2-Year Swap Spread 19.75 +.75 basis point

• TED Spread 25.0 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -40.25 +3.75 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 67.05 +.73%
• 3-Month T-Bill Yield 2.36% -1.0 basis point

• Yield Curve 25.75 unch.

• China Iron Ore Spot 70.20 USD/Metric Tonne +1.42%

• Citi US Economic Surprise Index 13.0 +2.4 points

• Citi Eurozone Economic Surprise Index -55.80 +.2 point

• Citi Emerging Markets Economic Surprise Index -5.10 unch.

• 10-Year TIPS Spread 2.01 -1.0 basis point
• 72.5% chance of Fed rate hike at Jan. 30th meeting, 90.1% chance at March 20th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +51 open in Japan 
• China A50 Futures: Indicating +120 open in China

• DAX Futures: Indicating +52 open in Germany

Portfolio: 

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my emerging market shorts

• Market Exposure: Moved to 100% Net Long

Morning Market Internals

NYSE Composite Index:

• Volume Running +24.3% Above 100-Day Average
• 0 Sectors Rising, 11 Sectors Declining
• 29.3% of Issues Advancing, 67.1% Declining
• 5 New 52-Week Highs, 177 New Lows
• 27.3% of Issues Above 200-day Moving Average
• Average 14-Day RSI 43.5%
• Vix 22.5 +6.1%
• Total Put/Call 1.32 +7.3%
• TRIN/Arms .85 -12.4%