Bear Radar

Style Underperformer:

• Large-Cap Growth -.9%

Sector Underperformers:

• 1) Gaming -2.8% 2) Semis -2.5% 3) Shipping -2.4%

Stocks Falling on Unusual Volume: 

• PETS, TUR, AMG, AMG, ALNY, BZH, ZIXI, TIGR, REGI, GIII, HOME, BABA and JD

Stocks With Unusual Put Option Activity:

• 1) AET 2) JCP 3) AMG 4) HTZ 5) GNW

Stocks With Most Negative News Mentions:

• 1) FRED 2) TWIN 3) NIO 4) AEON 5) CC

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Value -.2%

Sector Outperformers:

• 1) Coal +.4% 2) Education +.2% 3) Restaurants +.2%

Stocks Rising on Unusual Volume:

• AQ, SY, SBGI, CHSP, ATNX, OXY, APC, INS, CODA, AXSM, ESPR, RYI, DMRC, NSSC, BHC, VCYT, STAA, SHOP, ZYNE, BC, HIIQ, DK, FNKO and TACO

Stocks With Unusual Call Option Activity:

• 1) TEUM 2) MRNS 3) TIF 4) XLV 5) FAST

Stocks With Most Positive News Mentions:

• 1) AQ 2) IMGN 3) CYTK 4) DK 5) POST

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +7.5% Above 100-Day Average
• 11 Sectors Rising, 0 Sectors Declining
• 19.0% of Issues Advancing, 78.8% Declining
• 42 New 52-Week Highs, 21 New Lows
• 60.7% of Issues Above 200-day Moving Average
• Average 14-Day RSI 52.5%
• Vix 16.6 +29.2%
• Total Put/Call 1.19 +56.6%
• TRIN/Arms 1.14 +62.9%

Monday Watch

Today's Headlines

Bloomberg:

• Trump’s Vow to Up Duties Casts Pall Over Crucial China Talks.

• U.S.-China Trade Deal Talks Enter Endgame: Global Economy Week.

• Kim Jong Un’s Cryptic Moves Puzzle North Korea Watchers. 

• Yuan Sinks With U.S. Stock Futures on Tariff Risk. The yuan plunged the most since August, U.S. stock futures tumbled along with crude oil prices after U.S. President Donald Trump threatened to increase tariffs on Chinese imports, casting a cloud over talks this week that were expected to finalize a trade deal. The shock statement, following weeks of reports of continued progress in negotiations between the world’s two largest economies, is set to roil Asian markets Monday. The yuan slid 0.8 percent in offshore trade, and contracts on the S&P 500 Index sank as much as 1.8 percent. The yen climbed. West Texas Intermediate crude slumped about 2 percent. The renewed tension eliminated all the cheer from a strong U.S. jobs report, which had sent American stocks up Friday. Futures on 10-year Treasuries advanced. Futures on the S&P 500 Index slid 1.4 percent as of 7:06 a.m. in Hong Kong. Contracts on the Nikkei 225 Stock Average fell 2 percent in Chicago. Futures on Australia’s S&P/ASX 200 Index were up 0.5 percent earlier.  

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

• A $300 Billion Blowup Has Traders Bracing for War in Washington.  

• Occidental to Sell Anadarko Africa Assets for $8.8 Billion.

• Trump Slams Kentucky Derby, Says Best Horse Was Denied Victory.

• EU to Start Formal Probe on Spotify's Apple Complaint, FT Says.

Wall Street Journal: 

• Trump Issues Tariff Threat as U.S., China Talks Set to Resume.

• The Burdens of BernieCare.

• Weeding Out Dubious Marijuana Science.

• Boeing(BA) Knew About Problem for a Year Before Telling FAA, Airlines.

• Moore, Cain Withdrawals Re-Up Search for Supporters on Fed Board.

• Israel, Gaza Trade Blows in Deadly Exchanges.

• Standing Against Psychiatry’s Crazes.

• Administration Backs Plan for More H-2B Visas, Irking Critics.

MarketWatch.com:

• These colleges now offer courses in cannabis.

Barron's:

• Had bullish commentary on (BURL), (LOVE), (FTCH), (NKE), (OXY), (ZUO) and (HD).

Fox News: 

• Biden gives Trump a nickname, lambasts president for Jim Crow 'sneaking back in'.

• More than 600 rockets fired at Israel from Gaza in less than 24 hours.

CNBC: 

• Amazon(AMZN) can already ship to 72% of US population within a day, this map shows.

• Micro futures for the major indices are about to launch. Here’s everything you need to know. 

• Americans are flocking to these 9 southern cities where business is booming and salaries are rising.

Zero Hedge:    

• Trade Deal Dead: Trump Says 10% China Tariff Rising To 25% On Friday, Another $325BN In Goods To Be Taxed.

• Dow Futures Plunge 500 Points Amid Trump Trade Threat Turmoil.

• As Trump Approval Rating On Economy Skyrockets, Biden Slams President As "Aberration".

• Russian Authorities Confirm 41 Dead After Aeroflot Jet Explodes On Landing In Moscow.

• Senate Dems Delete Embarrassing Poll Showing 70% Prefer Kavanaugh Over RBG.

• Analysts Confirm North Korea Launched First Ballistic Missile Since 2017.

• Tariff Man Set To Impose Duties on Yarn From China, India.

• Orwellian Cloud Remains Over Russia-Gate.

• California High School To Erase George Washington Mural: "Traumatizes Students".

• California Ready To Ban Trump From 2020 Election.

• Life-Threatening Risks Prompt FDA To Order "Black Box" Warning Labels For Ambien, Other Sleep Aids.

• Robots Taking Over "Miserable" Job Of Unloading Trucks As E-Commerce Margins Slide.

Business Insider

• Long shot Country House wins Kentucky Derby after Maximum Security finishes first but is disqualified.

Night Trading

• Asian indices are -1.5% to -.75% on average.

• Asia Ex-Japan Investment Grade CDS Index 66.5 +1.5 basis points.

• China Sovereign CDS 40.75 unch.

• Bloomberg Emerging Markets Currency Index 66.39 -.02%.

• FTSE 100 futures n/a.

• S&P 500 futures -1.67%.

• NASDAQ 100 futures -1.96%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• (AMG)/3.26

• (PETS)/.46

• (SYY)/.70

• (TSN)/1.16

After the Close:

• (AIG)/1.06

• (ANDE)/.15

• (BKD)/-.37

• (CENT)/.71

• (RE)/5.90

• (FN)/.89

• (HTZ)/1.35

• (KLAC)/1.68

• (MOS)/.25

• (OXY)/.71

• (PXD)/1.62

• (RCII)/.35

Economic Releases

• None of note

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The (TRUP) CEO Q&A session 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 lower and to maintain losses into the afternoon.  The Portfolio is 75% net long heading into the week.

Weekly Outlook

• Wall St. Week Ahead by Reuters. 
• 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 lower on China trade deal concerns, global growth fears, oil decline, technical selling, yen strength and profit-taking. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 75% net long heading into the week.

Today's Headlines

Bloomberg:       

• Trump Says Kim Won’t Break ‘Promise to Me’ After Weapons Test.  

• Germany’s Merkel Hits Out at ‘Protectionist Tendencies’ in Trade.

• Berkshire Ramps Up Stock Buybacks as Cash Pile Keeps Growing.  

• From a Drive to Damascus to an Abdication in Japan: Weekend Reads.  

• Robots Edge Closer to Unloading Trucks in Amazon-Era Milestone.

Wall Street Journal:

• The Voter Suppression Myth.

• The Pale Green New Deal.

• North Korea Fires Unidentified Short-Range Weapon.

Fox News:

• ‘Spying’ report puts former G-man on the defensive: ‘What would you have the FBI do?’

CNBC:

• These are the best stock performers that nobody is talking about.

• Parody website with embarrassing photos of Joe Biden outranks his official campaign page on Google.

• Warren Buffett explains why he’s making a bet in the energy industry.

• Warren Buffett says bitcoin is a ‘gambling device’ with ‘a lot of frauds connected with it’.

Zero Hedge: 

• Hamas Launches Nearly 100 Rockets In An Hour On Israel In Massive Escalation.

• Brexit Party Soars In European Parliament Polls, 9 Points Ahead Of Labour.

• German Car Registrations Fall 1.1% As Global Auto Recession Continues.

• Italy And Hungary Forge Alliance To Defend Europe's Borders From Migrant Invasion.

• Barr Launches Wide-Ranging Probe Into 2016 FBI Spying.

• James Woods Banned From Twitter As Silicon Valley Zaps Conservative 2020 Influencers.

• Toilets & Skyscrapers: How Chicagoland's Elite Push Property Tax Bills Onto Average Joes.

• CDC: Idiots Riding E-Scooters Suffering Easily Preventable Injuries.

• Sharyl Attkisson: How Media Narratives Became More Important Than Facts.

• San Francisco Bans Anti-Car-Burglar Warning Signs Because... Racist.

• CDOs That Nearly Destroyed The Global Economy Are Back, But Now They're "Safer".

• Ukraine Confirms DNC/Clinton Operative Sought 'Dirt' On Trump During 2016 Election.

• Biden Was Wrong: Defense Department Says China Plans To Replace US, Become Top Power.

• China's Mass Surveillance App Hacked; Code Reveals Specific Criteria For Illegal Oppression.

• Dow Suffers Longest Weekly Losing Streak Of Year As Fed Loses Control Of Short-End.

Business Insider:

• Bill de Blasio is reportedly going to announce a 2020 run for president, but all signs point to his campaign being a disaster in the making.

• Warren Buffett and Charlie Munger say Coca-Cola getting into cannabis would ruin the company's 'wholesome image'.

• Why the esports audience is set to surge — and how brands can take advantage of increased fans and viewership.

• Twice as many Canadians are trying marijuana for the first time since it was legalized.

The Telegraph:

• US unemployment falls to levels not seen for half a century.