Bear Radar

Style Underperformer:

• Small-Cap Value -.7%

Sector Underperformers:

• 1) Road & Rail -5.8% 2) Oil Service -2.5% 3) Industrials -1.7%

Stocks Falling on Unusual Volume: 

• BYSI, NUS, CSX, ATEX, GWB, SHSP, TXT, BPTH, CRZO, EBIX, UNP, HI, NSC and LEVI

Stocks With Unusual Put Option Activity:

• 1) RRC 2) AET 3) CSX 4) APRN 5) SPG

Stocks With Most Negative News Mentions:

• 1) NUS 2) CSX 3) UNP 4) KSU 5) RL

Charts:

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

Bull Radar

Style Outperformer:

• Mid-Cap Growth +.2%

Sector Outperformers:

• 1) Gold & Silver +3.1% 2) Medical Equipment +1.3% 3) Semis +.8%

Stocks Rising on Unusual Volume:

• AVRO, SGEN, SUZ, CTAS, PNFP, ASML, USLV, INGR, DPZ, IGV, PAAS, HWC, OFIX, MTSI, MOR, OPRA, LFUS, UAL, STNE, FRC, SHOP, NRG, WPM, CARA, RUN and MAG

Stocks With Unusual Call Option Activity:

• 1) CSX 2) HSY 3) AMAT 4) HON 5) ABT

Stocks With Most Positive News Mentions:

• 1) ABT 2) BAC 3) CTAS 4) QCOM 5) PNC

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -8.2% Below 100-Day Average
• 5 Sectors Rising, 6 Sectors Declining
• 36.8% of Issues Advancing, 59.5% Declining
• 99 New 52-Week Highs, 48 New Lows
• 62.4% of Issues Above 200-day Moving Average
• Average 14-Day RSI 51.0%
• Vix 13.2 +2.5%
• Total Put/Call 1.06 +19.1%
• TRIN/Arms 1.13 -20.1%

Wednesday Watch

Night Trading 

• Asian equity indices are -.75% to unch. on average.

• Asia Ex-Japan Investment Grade CDS Index 64.5 +.75 basis point.

• China Sovereign CDS 43.0 +1.0 basis point.

• Bloomberg Emerging Markets Currency Index  67.63 -.01%.

• S&P 500 futures -.05%.

• NASDAQ 100 futures -.09%.

Morning Preview Links 

Earnings of Note 

Company/Estimate

Before the Open:

• (ABT)/.80
• (ASML)/.95
• (BAC)/.71
• (BK)/.96
• (CMA)/2.00
• (PGR)/1.41
• (TXT)/.86
• (USB)1.07

After the Close:

• (AA)/-.01
• (BXS)/.61
• (CCI)/1.39
• (EBAY)/.,62
• (IBM)/3.09
• (KMI)/.24
• (NFLX)/.55
• (SLG)/1.74
• (URI)/4.51

Economic Releases 

8:30 am EST

• Housing Starts for June is estimated to fall to 1260K versus 1269K in May.
• Building Permits for June is estimated to rise to 1300K versus 1294K in May.
  

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory decline of -3,785,270 barrels versus a -9,499,000 barrel decline the prior week. Gasoline supplies are estimated to fall by -2,421,100 barrels versus a -1,455,000 barrel decline the prior week. Distillate inventories are estimated to rise by +780,400 barrels versus a +3,729,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to fall by -.49% versus a +.5% gain prior.
  

2:00 pm EST

• US Fed's Beige Book report.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The UK CPI report, Eurozone Consumer Confidence report, weekly MBA Mortgage Applications report and the House Hearing on (FB)'s cryptocurrency 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 modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.

Stocks Slightly Lower into Final Hour on China Trade Deal Concerns, Oil Decline, Profit-Taking, Tech/Energy Sector Weakness

 Broad Equity Market Tone:

• Advance/Decline Line: Around Average
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 13.0 +2.4%

• Euro/Yen Carry Return Index 126.06 -.08%

• Emerging Markets Currency Volatility(VXY) 6.95 -.29%

• S&P 500 Implied Correlation 33.51 +.15%

• ISE Sentiment Index 106.0 +32.5%
  

• Total Put/Call .97 +1.04%

• NYSE Arms 1.30 -12.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 54.60 +2.12%
  

• America Energy Sector High-Yield CDS Index 608.0 +.70%

• European Financial Sector CDS Index 60.50 +3.63%

• Italian/German 10Y Yld Spread 185.50 -4.5 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 63.80 +.90%
  

• Emerging Market CDS Index 159.77 +.33%
  

• iBoxx Offshore RMB China Corporate High Yield Index 165.05 -.03%

• 2-Year Swap Spread 3.0 -.25 basis point

• TED Spread 24.74 +5.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -17.0 -.5 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 67.65 -.22%
• 3-Month T-Bill Yield 2.14% +1.0 basis point

• Yield Curve 26.0 -.25 basis point

• China Iron Ore Spot 117.0 USD/Metric Tonne +.83%

• Citi US Economic Surprise Index -42.0 +2.4 points

• Citi Eurozone Economic Surprise Index -8.80 -1.2 points

• Citi Emerging Markets Economic Surprise Index -28.60 +2.6 points

• 10-Year TIPS Spread 1.80 +2.0 basis points
• 100.0% chance of Fed rate cut at Sept. 18th meeting, 100.0% chance of cut at October 30th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -30 open in Japan 
• China A50 Futures: Indicating -33 open in China

• DAX Futures: Indicating -13 open in Germany

Portfolio:

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

• Disclosed Trades: None

• Market Exposure: 75% Net Long

Bear Radar

Style Underperformer:

• Large-Cap Growth -.2%

Sector Underperformers:

• 1) Disk Drives -2.4% 2) Software -1.2% 3) Oil Service -1.3%

Stocks Falling on Unusual Volume: 

• CDNA, DPZ, WTFC, ATRA, CHNG, WDC, XEC and NTNX

Stocks With Unusual Put Option Activity:

• 1) DISCA 2) RRC 3) QEP 4) AET 5) HPE

Stocks With Most Negative News Mentions:

• 1) ADMP 2) ARW 3) EQT 4) LEA 5) EROS

Charts:

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