Morning Market Internals

NYSE Composite Index:

• Volume Running -2.1% Below 100-Day Average
• 2 Sectors Rising, 9 Sectors Declining
• 29.8% of Issues Advancing, 67.5% Declining
• 41 New 52-Week Highs, 16 New Lows
• 38.5% of Issues Above 200-day Moving Average
• Average 14-Day RSI 53.3%
• Vix 17.3 +5.7%
• Total Put/Call 1.20 +23.7%
• TRIN/Arms 1.04 -.12%

Friday Watch

Night Trading 

• Asian equity indices are -1.0% to -.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 80.25 +3.75 basis points. 

• China Sovereign CDS 57.50 +3.5 basis points.

• Bloomberg Emerging Markets Currency Index 68.33 -.04%.

• FTSE 100 futures -.03%.

• S&P 500 futures -.33%.

• NASDAQ 100 futures -.42%.

Morning Preview Links

Earnings of Note
Company/Estimate

Before the Open:

• (CLF)/.59

• (GT)/.69

• (HAS)/1.68

• (PCG)/.61

• (PSX)/2.89

After the Close:

• (CCJ)/.23

Economic Releases

• None of note

Upcoming Splits

• None of note

Other Potential Market Movers

• The Eurozone Trade Balance report could also impact trading today.

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

Stocks Falling into Final Hour on China Trade Deal Worries, Global Growth Fears, European Debt Angst, Tech/Energy Sector Weakness

 Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 16.95 +10.21%

• Euro/Yen Carry Return Index 129.53 -.26%

• Emerging Markets Currency Volatility(VXY) 8.97 +.79%

• S&P 500 Implied Correlation 43.18 -1.82%

• ISE Sentiment Index 78.0 -22.0%
  

• Total Put/Call .99 +3.1%

• NYSE Arms 1.32 -2.22%

Credit Investor Angst:

• North American Investment Grade CDS Index 68.28 +4.08%
  

• America Energy Sector High-Yield CDS Index 658.0 -.06%

• European Financial Sector CDS Index 91.49 +5.23%

• Italian/German 10Y Yld Spread 283.5 +14.25 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 77.83 +.32%
  

• Emerging Market CDS Index 173.39 +2.12%
  

• iBoxx Offshore RMB China Corporate High Yield Index 156.23 +.02%

• 2-Year Swap Spread 14.25 -.25 basis point

• TED Spread 33.75 +.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -6.5 -3.5 basis points.

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 68.35 -.26%
• 3-Month T-Bill Yield 2.40% -1.0 basis point

• Yield Curve 17.25 -.5 basis point

• China Iron Ore Spot 91.02 USD/Metric Tonne +2.41%

• Citi US Economic Surprise Index 17.0 -2.0 points

• Citi Eurozone Economic Surprise Index -79.1 -4.7 points

• Citi Emerging Markets Economic Surprise Index -10.2 +.4 point

• 10-Year TIPS Spread 1.84 -2.0 basis points
• 0.0% chance of Fed rate hike at May 1st meeting, 1.1% chance at June 19th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -221 open in Japan 
• China A50 Futures: Indicating -21 open in China

• DAX Futures: Indicating +16 open in Germany

Portfolio: 

• Slightly Lower: On losses in my medical/biotech/tech 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:

• Small-Cap Growth -1.6%

Sector Underperformers:

• 1) Oil Service -5.1% 2) Gaming -2.2% 3) Disk Drives -3.0%

Stocks Falling on Unusual Volume: 

• GRUB, SONO, PRLB, TPR, VVV, HAIN, CENT, FCAU, ENS, FEYE, MGNX, CENTA, HLF, TWTR, ADS, K, DNKN, FANH, ELY, VNDA, NEWR, WPP, NOV, RYN, TRHC, PAG, BR, SNA, CUB and SPB

Stocks With Unusual Put Option Activity:

• 1) PSTG 2) GRUB 3) ITW 4) AET 5) TPR

Stocks With Most Negative News Mentions:

• 1) USAT 2) FCAU 3) TSLA 4) MRVL 5) BABY

Charts:

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

Bull Radar

Style Outperformer:

• Mid-Cap Value -.9%

Sector Outperformers:

• 1) Homebuilders +.6% 2) Utilities +.5% 3) REITs +.4%

Stocks Rising on Unusual Volume:

• CMG, IRBT, STI, MTCH, BBT, PSDO, EOLS, BPY, HBI, BLKB, AHL, BPR, PCMI, WERN, TTWO, ARRY, EPC, SNN, CMA, CRON, HCSG, EA, SFLY, UFI, TTGT, ENSG, CAH, TTGT, HQY, SEE, MAS, MC, VIRT, HBAN and PDM

Stocks With Unusual Call Option Activity:

• 1) HAIN 2) XLRE 3) FHN 4) RF 5) CMG

Stocks With Most Positive News Mentions:

• 1) HBI 2) CMG 3) MAS 4) CAH 5) LH

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +19.8% Above 100-Day Average
• 2 Sectors Rising, 9 Sectors Declining
• 21.0% of Issues Advancing, 76.4% Declining
• 42 New 52-Week Highs, 22 New Lows
• 39.9% of Issues Above 200-day Moving Average
• Average 14-Day RSI 55.6%
• Vix 17.5 +13.9%
• Total Put/Call 1.14 +18.8%
• TRIN/Arms 1.09 -19.3%