Bear Radar

Style Underperformer:

• Small-Cap Growth -3.4%

Sector Underperformers:

• 1) Steel -4.5% 2) Semis -4.5% 3) Computer Hardware -4.3%

Stocks Falling on Unusual Volume: 

• STM, TEVA, UBNT, FBC, HGV, YELP, VOD, MSCI, LASR, PBYI, FNKO, MYL and SSP

Stocks With Unusual Put Option Activity:

• 1) CLDR 2) GT 3) AET 4) CNX 5) XME

Stocks With Most Negative News Mentions:

• 1) INSY 2) TITN 3) TLRY 4) LYFT 5) ADT

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Value -2.0%

Sector Outperformers:

• 1) Gold & Silver +1.8% 2) Utilities +.7% 3) REITs -.3%

Stocks Rising on Unusual Volume:

• AMBR, TWST, EVER, KRNT, KL, UGLD, MTCH, CBLK, TPB, AEM, FNV, EXR, OR and STMP

Stocks With Unusual Call Option Activity:

• 1) FITB 2) YINN 3) CRUS 4) STMP 5) NLSN

Stocks With Most Positive News Mentions:

• 1) CPRX 2) CUB 3) APC 4) CBOE 5) JD

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +15.7% Above 100-Day Average
• 1 Sector Rising, 10 Sectors Declining
• 11.0% of Issues Advancing, 87.1% Declining
• 30 New 52-Week Highs, 87 New Lows
• 54.7% of Issues Above 200-day Moving Average
• Average 14-Day RSI 47.0%
• Vix 20.5 +27.5%
• Total Put/Call 1.32 +8.2%
• TRIN/Arms 1.54 +49.5%

Monday Watch

Today's Headlines

Bloomberg:

• China-U.S. Feud Fuels Haven Demand as Traders Rewrite Playbook.  

• Trade War Tops Emerging-Market Worries Again as Skepticism Grows.

• Kudlow Sees Impact to ‘Both Sides’ From U.S.-China Trade War.

• Stocks Drop, Yuan Slides as Trade War Escalates. Stocks in Asia fell with U.S. equity futures, while the yen and Treasuries climbed, after trade talks ended without a resolution and China said the U.S. must remove all extra tariffs. The yuan retreated. The heightened tensions over the weekend unwound gains in risk assets from late Friday as optimism over progress between the two sides faded. Shares in Japan and South Korea opened lower and S&P 500 Index futures dropped 1.1%. Moves in currencies extended early Monday and Treasury yields retreated as trading began. Hong Kong is closed Monday for a holiday. Japan’s Topix index dropped 0.7% as of 9:05 a.m. in Tokyo. South Korea’s Kospi index lost 0.9%. Australia’s S&P/ASX 200 Index declined 0.4%. Futures on the S&P 500 Index fell 1.1%.  

• Trump's Tariff Tweets, Fed Cuts Ahead, 7% Growth Club: Eco Day.

• All Eyes on Uber's Second Day of Trading After Debut Flop.    

• Yen Strengthens Amid U.S.-China Uncertainty.

• Most Mideast Stocks Fall With Trade Tension Spreading: Inside EM.  

• Fed's Kashkari Adds Inequality to Argument for Keeping Rates Low.

Wall Street Journal:

• How the U.S.-China Talks Hit a Wall.

• Small Businesses Are Squeezed by Tight Labor Market.

• Uber and Lyft Confront High Driver Turnover.

• Citigroup Bets Big on Digital Banking.

• Rattled by Cyberattacks, Hospitals Push Device Makers to Improve Security.

MarketWatch.com:

• Trump says China is making a losing bet that he’ll be beaten in the 2020 presidential election.

Fox News:

• EXCLUSIVE: Graham looks to unseal doc that shows Steele dossier lacked proof for FBI probe.

CNBC:

• How Trump’s trade war threatens China’s ambition to lead the world in technology.

• Kudlow says Trump and Xi are likely to meet at G-20 summit despite trade dispute.

• YouTube and its users face an existential threat from the EU’s new copyright directive.

Zero Hedge:   

• S&P Futures Tumble As Trade War Shows No Sign Of De-escalation.

• "Odds Point To A Worst-Case Scenario": Shocked Traders Respond To Latest Trade War Twist.

• FBI Uncovers Terror Training Camp in Alabama.

• Why Hasn't A Single Democrat Looked At The 99.9% Unredacted Mueller Report Provided To Congress?

• Schiff: Biden Ukraine Scandal Should Be Off Limits.

• Chinese Media Accuses "Fierce, Irrational US Offensive" For Trade Talk Collapse.

• Top Lawyer For Obama-Era FBI 'Nervous' About DOJ Inspector General Investigation.

• Bezos Reveals His Ugly Vision For The World He's Trying To Rule.

• The Only Way Is Brexit: Farage Surges Again!

• As Cryptos Soar, ECB's Draghi Warns: Not Currencies, They're Very Risky Assets.

Business Insider:

• Kamala Harris says 'we need to seriously take a look' at breaking up Facebook.

Telegraph:

• Gen Z is paying the price for quick and cheap debt.

Night Trading

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

• Asia Ex-Japan Investment Grade CDS Index 70.25 -.5 basis point.

• China Sovereign CDS 44.5 -2.25 basis points.

• Bloomberg Emerging Markets Currency Index 66.31 -.08%.

• FTSE 100 futures +.13%.

• S&P 500 futures -.97%.

• NASDAQ 100 futures -1.14%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• None of note

After the Close:

• (LM)/.54

• (STE)/1.43

• (TTWO)/.74

• (VIPS)/1.08

Economic Releases

• None of note

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Fed's Clarida speaking, Australia Home Price report and the Japan Trade Balance 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 lower and to maintain losses into the afternoon.  The Portfolio is 50% 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 mixed as China trade deal concerns, global growth fears and yen strength offset bargain-hunting, technical buying and oil gains. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 50% net long heading into the week.

Today's Headlines

Bloomberg:           

• Trump Warns China to Act on U.S. Trade Deal or Face Worse Terms.

• China Names Its Trade-Deal Price as Trump Sets New Deadline.

• China’s Latest Crackdown Target Is Liberal Economists.

• China's Top Security Regulator Seeks to Ease Volatility Concerns .

• Trump's Tariffs Put China at Center of 2020 Re-Election Bid.  

• Aussie Housing Slump Deepens as Sydney Listings Hit 2004 Low.

• Punch-Drunk Traders Stop Guessing as Trump Runs Markets Ragged.    

• China's BAIC Seeks to Buy Stake of Up to 5% in Daimler: Reuters.

• North Korea, China Tensions With U.S. Are Back: Weekend Reads.

Wall Street Journal:    

• China Holds Fire After Trade Talks Fail to Find Deal.

• How a Chinese Scientist Broke the Rules to Create the First Gene-Edited Babies.

• The China Trade Impasse.

• The New Cities for New Grads: Salt Lake City, Pittsburgh and Baltimore.

• Wake-Up Call for Grads: Entry-Level Jobs Aren’t So Entry Level Any More.

• Day Traders Are Back, Now Playing With Options.

• Global Regulators Race to Curb Silicon Valley.

• Push for a $15 Minimum Wage Divides Democrats.

Barron's:

• Had bullish commentary on (SRE), (UPS), (DEO), (JBHT), (NEE), (JPM), (MSFT), (APD), (HON) and (MKC).

• Had bearish commentary on (BF/B) and (MGPI).

MarketWatch.com:

• Why the U.S.-China trade deficit is so huge: Here’s all the stuff America imports.

• Fed’s Bostic: Higher tariffs could result in interest-rate cuts if consumer spending suffers. 

• Uber’s IPO was the 5th worst over the past quarter-century, by this measure.

Fox News:

• Dems fume as president makes plans for grand patriotic celebration of nation’s founding. 

• Human trafficking victims mostly underage children from within the US.

CNBC:

• Uber’s IPO caps an era of mediocrity and small thinking in Silicon Valley.

• Wage growth is hot and more raises are coming, major employers tell CNBC.

• ‘Trade deal trauma’ sees investors pull $20 billion from stocks in a week.

• These charts from Uber’s IPO filing show why investors are nervous.
  

Zero Hedge:

• Trump Pulls The Trigger: Begins Process Of Raising Tariffs On All Remaining $300 Billion China Imports.

• Here's How To Review All The Recordings Alexa Has Of You.

• "I Will Not Yield" - In Epic Rant, Jim Jordan Accuses Dems Of Sweeping 'Spygate' Coverup. 

• 2006 Biden: 'We Need A Border Wall' And To 'Punish American Employers' Who Hire Illegals.

• The Origins Of The Deep State In North America, Part 2.  

• China Car Sales Tank 16.6% In April, Falling For A Record 11 Months In A Row.

• The Latest Tariffs Come At A Time Of Weakening Economic Growth.

• Global Hard Disk Drive Demand In Free-Fall.

• Microsoft Rolls Out 'Politically Correct' AI To Avoid Misgendering And Other 'Problematic' Faux Pas.

Business Insider: 

• Uber wipes out $655 million of investor wealth in its opening day.

• China uses an intrusive surveillance app to track its Muslim minority, with technology that could be exported to the rest of the world. Here's how it works.

• Amazon's shift to one-day Prime shipping could prove a big challenge to 2 breeds of retailers.