Bear Radar

Style Underperformer:

• Mid-Cap Growth +1.1%

Sector Underperformers:

• 1) Papers -.2% 2) Gold & Silver unch. 3) Steel +.2%

Stocks Falling on Unusual Volume: 

• PCG, PSTV, ZS, HMI, GGAL, GLOB, LK, BMA, CGC, QNST, GSB and PAM

Stocks With Unusual Put Option Activity:

• 1) VRAY 2) CLVS 3) COG 4) CNC 5) KSS

Stocks With Most Negative News Mentions:

• 1) PGE 2) ZS 3) FTCH 4) CNIG 5) GE

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Value +1.4%

Sector Outperformers:

• 1) Oil Service +4.4% 2) Gaming +3.4% 3) Shipping +2.5%

Stocks Rising on Unusual Volume:

• INMD, QIWI, WB, SONO, PROS, TGNA, AUTL, ARMK, SINA, EL, MODN, APO, BIDU, IQ, FLY, NVDA, TPR and PAYS

Stocks With Unusual Call Option Activity:

• 1) VRAY 2) IYR 3) PVTL 4) URBN 5) PSTG

Stocks With Most Positive News Mentions:

• 1) QIWI 2) SINA 3) WB 4) EL 5) SONO

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -.6% Below 100-Day Average
• 11 Sectors Rising, 0 Sectors Declining
• 75.6% of Issues Advancing, 21.5% Declining
• 117 New 52-Week Highs, 13 New Lows
• 47.6% of Issues Above 200-day Moving Average
• Average 14-Day RSI 43.0%
• Vix 17.6 -4.9%
• Total Put/Call .93 -13.9%
• TRIN/Arms 1.17 +216.2%

Monday Watch

Today's Headlines

Bloomberg:   

• Trump Says U.S. ‘Talking’ With China But Not Ready for a Deal.  

• Japan Exports Decline Again as Global Economic Outlook Darkens.

• Asia Stocks Set to Start Week Higher; Yen Flat. Stocks in Asia were set for gains Monday following a bounce in U.S. equities as traders kick off a busy week for economic data and await commentary from the Federal Reserve chief. Futures pointed higher in Japan, Hong Kong and Australia. U.S. contracts rose after a positive close in the S&P 500 Index helped by speculation European officials will bolster stimulus if growth in the region continues to sputter. Treasuries yields recovered from multiyear lows Friday, after an inversion in the yield curve earlier in the week. The yen and yuan were steady early Monday. The S&P 500 Index gained 1.4%. Futures climbed 0.4% as of 8:25 a.m. in Tokyo. Futures on Japan’s Nikkei 225 rose 0.8%. Hang Seng futures earlier advanced 0.2%. Futures on Australia’s S&P/ASX 200 Index added 0.6%.  

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

• Waiting for Powell, China Revamps Rates, Asia Easing: Eco Day.

• Negative Mortgages Set Another Milestone in a No-Rate World.

• The World Is Waiting for Powell’s Signals.

• CDC Looking Into Pulmonary Illness Linked to E-Cigarettes.  

• Powell Likely to Use Jackson Hole to Suggest Fed Ready to Cut.\

Wall Street Journal:

• Biggest Hong Kong Protest in Weeks Sends Peaceful Message for Change.

• Large Firms Trim Debt, Fueling Surge in Bonds at Center of Leverage Concerns.

• Small Companies Play Big Role in Robocall Scourge, but Remedies Are Elusive.

• Scores Killed in Afghanistan Wedding Blast.

• Iranian Tanker Leaves Gibraltar Over U.S. Objections.

• Trump Isn’t the One Dividing Us by Race.

• The Right’s Left Turn on Drug Prices.

• Fed Chief Wedged Between a Slowing Economy and an Angry President.

Fox News:

• Tlaib, Omar share anti-Trump, Netanyahu image from cartoonist celebrated in Iran Holocaust contest.

• Crenshaw rips Antifa after day of protests in Portland.

• Graham: Americans will soon learn how ‘off the rails’ FBI was on Russia probe. 

• Trump reveals Apple CEO made this 'compelling' case against some tariffs.

CNBC:

• White House pushes back against recession fears, defends trade war.
  

• Amazon execs contributed to Congressional antitrust probe leader two months before July hearing.

• Americans overwhelmingly support free trade as concern grows about Trump’s economy.

• Fed’s Powell must signal a more aggressive stance on rates at Jackson Hole or stocks will tumble, James Bianco warns.

• Trump says he talked to Apple CEO Tim Cook about tariffs and Samsung.

Zero Hedge:    

• Hong Kong's Inevitable Showdown.

• Epstein Prison Guards "Not Cooperating" With DOJ Probe.

• Bankruptcy Filings Rise Among US Energy Producers, Report.

• 'People Don't Want To Be Stupid Twice': Foreign Diplomats Betting On Trump Win In 2020.

• Lessons From Venezuela: Violence, Crime, & Gangs When SHTF.

• Kudlow "Doesn't See A Recession At All", Warns Full 10% China Tariffs To Go Ahead In December.

• Which Hedge Funds Are Making A Killing As Yields Collapse.

• Trump Slams NYT After Leaker Reveals Pivot From 'Russiagate' To 'Racism Witch Hunt' 

• Next Domino To Fall: Inventory Glut Plagues US Auto Sector, New Prices Plunge In July.

• Which Hedge Funds Are Making A Killing As Yields Collapse.

• Checkmate! Corbyn's Please Make Me "Temporary PM" Scheme Fails Already.

Business Insider:

• This former Googler says he's so tired of the astronomical housing prices in San Francisco that he bought land in Austin, Texas instead.

Night Trading

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

• Asia Ex-Japan Investment Grade CDS Index 66.50 -3.5 basis points.

• China Sovereign CDS 52.0 -4.0 basis points.

• Bloomberg Emerging Markets Currency Index 65.71 +.01%.

• FTSE 100 futures +.29%.

• S&P 500 futures +.37%.

• NASDAQ 100 futures +.42%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• (EL)/.54

• (SINA)/.51

• (WB)/.60

After the Close:

• (BIDU)/.92

• (FN)/.94

Economic Releases

• None of note

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Eurozone CPI report could also impact trading today.

BOTTOM LINE: Asian indices are higher, boosted by commodity and industrial shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed.  The Portfolio is 75% net long heading into the week.

Weekly Outlook

• Wall St. Week Ahead by Reuters. 

• Weekly Market Outlook by Yahoo. (video)

• Global Economy Week by Bloomberg.

• 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 European/Emerging Markets/US High-Yield Debt Angst, technical selling and China trade deal concerns offset earnings optimism, more dovish FOMC commentary and oil strength. 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’s Warning to Europe: You’re Next.

• Trump Mused About 100% French Wine Tariff at Hamptons Fundraiser.

• China Chastens Protesters as Demand List Grows: Hong Kong Update.  

• U.S. Unveils Warrant to Seize Iran Ship Stuck at Gibraltar.

• U.S. Weighs Selling 50- and 100-Year Bonds After Yields Plummet.

• Goldman's Copsey Keeps Faith in Stocks Amid ‘Overdone’ Bond Run.

• Immigrant Billionaire Backs Trump Wall to Stem Border Flows.  

• Your Weekend Reading: Hong Kong’s Threat.  

• Where Hedge Funds Made Big Bets in Second Quarter.

Wall Street Journal:

• U.S. Issues Warrant to Seize Iranian Oil Tanker in Gibraltar.

• California’s Biggest Cities Confront a ‘Defecation Crisis’.

• Fight Over For-Profit Colleges’ Funding Centers on Veterans.

• Some Israelis Worry U.S. Bipartisan Support Is Eroding.

Barron's:

• Had bullish commentary on (CVX), (XOM), (EOG), (SU) and (AEO).

• Had bearish commentary on (VIAB) and (SMH).

MarketWatch.com:

• ‘Godfather’ of technical analyst says he’s never seen such ‘a confluence of confusion’ on Wall Street.

Fox News:

• Late night host Maher slams 'woke', far-Left Dems' 'purity test' over Israel.

CNBC:

• Here’s what Powell could say at Jackson Hole to soothe the roller coaster markets.

• The strangest and most alarming things in WeWork’s IPO filing.

• These stocks fell after earnings, but Wall Street analysts see a buying opportunity.

• China unveils rate reform to steer funding costs lower for firms.

Zero Hedge:

• More Than 40% Of Americans Believe Epstein Was Murdered, Poll Shows.

• It's Official: Epstein Committed Suicide By Hanging, Medical Examiner Rules.

• Wells Fargo Blindsides Customers By Charging Thousands In Overdraft Fees On 'Closed' Accounts.

• Midwest Farm Loan Repayment Issues Hit Highest Level Since 1999.

• It's Not A Gun Problem, It's A Culture Problem.

• "The Impact On Tourism Is Huge:" Hong Kong Hotel Crisis Erupts Amid Escalating Protests.

• Violence Breaks Out Between Antifa And Proud Boys Despite Heavy Police Presence; Bus Attacked, Chased.

• It Took A Billionaire Pedophile To Die In Jail For Media To Finally Report On Elite Child Sex Trafficking.

• China Readies 'Giant Forks' To Subdue Hong Kong Protesters.

• UPS Has Secretly Been Using Self-Driving Freight Trucks For Months.

• A Hidden Political Agenda? Mainstream Media Suddenly Full Of Stories About Imminent Recession.

• The US Share Of Global Yields Has Climbed To 94%.

• Former MSNBC Reporter Spills Details On Pro-Establishment Bias In Media.

• Nationwide Computer Glitch Causes Customs Chaos At US Airports.

• Trump Administration Considering Issuance Of 50, 100-Year Treasuries.

• Bond Yields Plunge Most Since 'Black Monday', Stocks Stumble On Week.

Business Insider:

• Trump held a call with top Wall Street execs as markets tumbled Wednesday.

• The doomsday warnings about the US housing market are getting it backward.

The Telegraph:

• Europe risks losing the UK to the Americans for half a century unless it changes course fast.