Bear Radar

Style Underperformer:

• Mid-Cap Value +.1%

Sector Underperformers:

• 1) Telecom -.8% 2) Utilities -.6% 3) Foods -.6%

Stocks Falling on Unusual Volume: 

• PSO, EHTH and CONE

Stocks With Unusual Put Option Activity:

• 1) HTZ 2) AET 3) LNG 4) EPI 5) NTNX

Stocks With Most Negative News Mentions:

• 1) WIN 2) AAWW 3) IMAX 4) KHC 5) VICL

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Growth +.6%

Sector Outperformers:

• 1) Biotech +2.0% 2) Disk Drives +1.5% 3) Computer Hardware +1.5%

Stocks Rising on Unusual Volume:

• CMTA, ONCE, STMP, LABL, QURE, CAF, CRSP, PSCH, AKCA, CRI, HMI, ORTX, RGNX, YRD, IGV, DHR, LX, BIB, TENB, HUYA, W, ETSY, VIOT, PLAN, BMRN, BLUE, BOLD, GE, WAB, VYGR, IIPR, FTCH, MCFT, DIOD, EDIT, PBYI, TEX, ADTN, RTRX, CBLK and OLED

Stocks With Unusual Call Option Activity:

• 1) ASHR 2) KPTI 3) BERY 4) MTW 5) DHI

Stocks With Most Positive News Mentions:

• 1) CMTA 2) TEX 3) NFE 4) W 5) WAB

Charts:

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

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running +5.3% Above 100-Day Average
• 9 Sectors Rising, 2 Sectors Declining
• 56.9% of Issues Advancing, 40.6% Declining
• 140 New 52-Week Highs, 6 New Lows
• 51.4% of Issues Above 200-day Moving Average
• Average 14-Day RSI 59.6%
• Vix 13.8 +2.3%
• Total Put/Call .69 -10.4%
• TRIN/Arms .97 -30.2%

Monday Watch

Today's Headlines

Bloomberg:  

• Trump Extends China Tariff Deadline After ‘Substantial’ Progress.

• Debt Is Roaring Back in China.

• May Delays Brexit Vote to Buy Time as Ministers Threaten Revolt.  

• After Venezuela Aid Is Torched, Guaido Plots Bolder Measures.

• Wild Week Ahead: Trade, Brexit, Trump, Kim, Cohen and Powell.    

• Stocks Gain, Yuan Advances on Trade Optimism: Markets Wrap. Stocks built on recent gains amid positive signals emanating from trade negotiations. The yuan and the Australian dollar advanced, while Treasuries fell. President Donald Trump said he will delay the March 1 deadline for higher U.S. tariffs on $200 billion of Chinese goods. That gave a modest lift to riskier assets, with Japan and South Korean shares opening higher and U.S. equity futures advancing. The yield on 10-year Treasuries nudged up. Japan’s Topix index gained 0.5 percent as of 9:02 a.m. in Tokyo. S&P 500 Index futures rose 0.4 percent. Australia’s S&P/ASX 200 Index added 0.3 percent. South Korea’s Kospi index rose 0.4 percent.   

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

• Trump vs Trade Czar, Xi's Lending Hurdle, Brexit Angst: Eco Day.

• Dubai Stocks Cross Resistance Level Held For a Year: Inside EM.

• ‘Play-the-Pause’ Trading Strategies Gain Traction on Wall Street.  

• With Fed Eyeing Inflation Overshoot, JPMorgan Likes Gold, TIPS.

Wall Street Journal:

• Pope Vows to Combat Sex Abuse but Offers Few Policy Specifics.

• Stocks Tied to Economic Growth Push Dow Industrials Toward New High.

• Frackers Face Harsh Reality as Wall Street Backs Away.

• Maduro’s Opposition Urges Military Force in Venezuela.

• Fed Embarks on a Rethink of Its Inflation Target.

MarketWatch.com:

• Both Republicans and Democrats are too complacent about the budget deficit.

• It’s the best start for the stock market in 32 years by one measure — so why is Wall Street so uneasy?

Fox News:

• DNC Chair Perez says GOP derides socialism to distract from real issues.

• Pompeo rips lawsuit from family of ISIS wife, says she’s 'non-citizen terrorist'.

CNBC:

• Trump extends deadline for Chinese tariffs set to begin on March 1, citing progress on trade.

• Huawei’s new foldable phone will top both Apple and Samsung in price, costing around $2600.

• Trump is right that the US risks losing the 5G race, Huawei chairman say.

• China rushes to seal trade deal ahead of Trump's deadline.

• 2016 all over again? Why historically low global interest rates could make a comeback this year.

Zero Hedge:       

• Trump Delays March 1 China Tariff Deadline.

• Berkshire Letter Highlights: Shocking $25BN Loss; Buffet Bashes "Deficit Doomsayers", Emerges As Closet "Austrian".

• New York Bus, Subway Ridership Tumbles, Leaving MTA Scrambling.

• Venezuela Aid Trucks Set Ablaze As Maduro Tells Trump: "Yankee, Go Home".

• The Benefits Of Brexit.

• Video: Iran Hacks Into CENTCOM, Crashes MQ-9 Reaper Drone.

• Microsoft Workers Revolt Over $480 Million Defense Contract.

• Americans Call Their Government America's Top Problem.

• Watch China Cut BBC Live Feed When Correspondent Mentions Muslim Internment Camps.

• Saturday Satire - Smollett Offered CNN Job After Making Up Story Out Of Thin Air.

• AOC's Latest Nanny-State Proclamation: Americans Must "Eat Fewer Hamburgers" To Stop Climate Change.

Business Insider:

• British MPs will only get a meaningful vote 2 weeks before the UK is due to exit the EU, Theresa May says. 

• After a big privacy backlash, Google’s Nest explains which of its products have microphones and why.

Night Trading

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

• Asia Ex-Japan Investment Grade CDS Index 70.50 -1.75 basis points.

• China Sovereign CDS 49.75 -1.75 basis points.

• Bloomberg Emerging Markets Currency Index 68.29 +.12%.

• FTSE 100 futures +.08%.

• S&P 500 futures +.32%.

• NASDAQ 100 futures +.40%.

Morning Preview Links

Earnings of Note

Company/Estimate
Before the Open:

• (CRI)/2.56

• (MDR)/.18

• (TEN)/1.43

After the Close:

• (ETSY)/.28

• (CRZO)/.55

• (HTZ)/.90

• (MOS)/.57

• (RCIOI)/.20

• (SHAK)/.03

• (THC)/.29

• (TEX)/.47

Economic Releases
8:30 am EST

• The Chicago Fed National Activity Index for Jan.

10:00 am EST

• Wholesale Inventories MoM for Dec. is estimated to rise +.4% versus a +.3% gain in Nov.

• Wholesale Trade Sales MoM for Dec.

10:30 am EST

• The Dallas Fed Manufacturing Activity Index for Feb. is estimated to rise to 4.8 versus 1.0 in Jan.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The 2/5-Year T-Note auctions, Mexico GDP report, Mobile World Congress, Morgan Stanley Tech/Media/Telecom Conference, JMP Securities Tech Conference, (ETH) investor meeting and the BofA Merrill Animal Health Summit could also impact trading today.

BOTTOM LINE: Asian indices are higher, boosted by technology and industrial shares in the region. I expect US stocks to open modestly higher and to maintain gains into the afternoon.  The Portfolio is 100% net long heading into the week.

Weekly Outlook

• Wall St. Week Ahead by Reuters. 
• Weekly Market Outlook by Yahoo. (video)
• Stocks to Watch Next Week by Seeking Alpha.
• Weekly Economic Calendar by Briefing.com.

BOTTOM LINE: I expect US stocks to finish the week modestly higher on dovish FOMC commentary, China trade deal hopes, diminished global growth fears,  technical buying, yen weakness and oil strength. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 100% net long heading into the week.

Today's Headlines

Bloomberg: 

• Fiery Skirmishes Erupt as Guaido Tries to Bring Venezuela Aid.

• France Vows to Continue Fight Against Jihadists in Mali.

• Roche Nears $5 Billion Deal to Buy Spark Therapeutics: WSJ.

Wall Street Journal:   

• China Trade Talks Extended as Trump Pushes to Close Deal.

• Buffett’s Kraft Heinz Bet Dragged Down Berkshire Hathaway.

• Saturday Essay: The Failure of the French Elite.

• Vote Fraud, in the Flesh.

• On-Demand Grandkids and Robot Pals to Keep Senior Loneliness at Bay. 

• Venezuela Troops Defect as Tensions Flare in Border Showdown.

• ‘Apex Legends’ Is EA’s Move to Out-Fortnite ‘Fortnite’.

Barron's:

• Had bullish commentary on (CSCO), (CIEN), (IAU), (ENTG), (JNPR), (BIDU), (BABA) and (MO).

• Had bearish commentary on (NVDA).

Fox News:

• Wall Street mogul, ex-Citigroup president among those caught up in sex sting that ensnared Kraft.

CNBC:

• Venezuela protests flare, soldiers defect as border operation to deliver aid commences.

• Salesforce, Dell and 8 other top tech companies hiring remote workers now.

Zero Hedge:

• Wall Street Legends Identified In Florida Prostitution Sting.

• Judge Rules Plea Deal For "Orgy Island Billionaire" Broke Federal Law.

• Berkshire Letter Highlights: Shocking $25BN Loss; Buffet Bashes "Deficit Doomsayers", Emerges As Closet "Austrian".

• Kim Departs For Hanoi As Second Meeting With Trump Looms.

• Theresa May Facing Pressure To Quit Within Three Months.

• Saul Alinsky's 13 Rules For 'Have-Nots' To Gain Power.

• S&P Warns Global Sovereign Debt Will Top $50 Trillion This Year.

• Pennsylvania & The Folly Of Minimum Wage Laws.

• Smollett Now Has An "Untreated Drug Problem" As 'Empire' Mulls Recast.

• Smartphone Apps Sending "Intensely Personal Information" To Facebook - Whether Or Not You Have An Account.

• Mueller Report Won't Be Delivered Next Week.

• Dow Rallies To Best Start In 55 Years As Earnings, Economic Data Collapse.

Business Insider:

• Here are the biggest takeaways from Warren Buffett's annual letter.

• WARREN BUFFETT: We're hunting for an 'elephant-sized acquisition'.

• Photos show chaos in Venezuela as protesters and soldiers clash over humanitarian aid shipments.