Bear Radar

Style Underperformer:

• Small-Cap Value +.3%

Sector Underperformers:

• 1) Oil Service -.9% 2) Computer Hardware -.5% 3) Gaming -.3%

Stocks Falling on Unusual Volume: 

• EGHT, NEP, CLR, FUN, AIMT, ANGO, SATS, PFGC, AXNX, AXSM, HPQ, HRTX and AVT

Stocks With Unusual Put Option Activity:

• 1) CHK 2) EWY 3) GEO 4) EWH 5) KRE

Stocks With Most Negative News Mentions:

• 1) AVT 2) ABUS 3) HPQ 4) MYE 5) AR

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Growth +1.1%

Sector Outperformers:

• 1) Homebuilders +1.9% 2) Steel +1.7% 3) Airlines +1.5%

Stocks Rising on Unusual Volume:

• AVYA, RNG, PCG, SRPT, SFIX, SGH, ZYXI, CHRS, USM, LITE, GH, ADPT and ECC

Stocks With Unusual Call Option Activity:

• 1) Z 2) AVYA 3) HPQ 4) BMRN 5) GRUB

Stocks With Most Positive News Mentions:

• 1) AVYA 2) RNG 3) ICE 4) CHTR 5) ATRO

Charts:

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

Friday Watch

Night Trading 

• Asian equity indices are -.25% to +.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 79.0 -.75 basis point.

• China Sovereign CDS 49.0 -1.0 basis point.

• Bloomberg Emerging Markets Currency Index  65.51 +.05%.
• FTSE 100 futures +.54%.

• S&P 500 futures -.08%.

• NASDAQ 100 futures -.10%.

Morning Preview Links 

Earnings of Note 

Company/Estimate

Before the Open:

• None of note

After the Close:

• None of note

Economic Releases

8:30 am EST

• The Change in Non-Farm Payrolls for Sept. is estimated to rise to 146K versus 130K in Aug.
• The Unemployment Rate for Sept. is estimated at 3.7% versus 3.7% in Aug.
• Average Hourly Earnings MoM for Sept. is estimated to rise +.3% versus a +.4% gain in Aug.
• The Trade Balance for Aug. is estimated at -$54.5B versus -$54.0B in July.

Upcoming Splits

• None of note

Other Potential Market Movers

• The Fed's Powell speaking, Fed's Brainard speaking, Fed's Quarles speaking, Eurozone Retail Sales report and the (JW/A) investor day could also impact trading today.

BOTTOM LINE: Asian indices are slightly higher, boosted by technology and industrial shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the day.

Stocks Reversing Higher into Final Hour on Rising Fed Rate-Cut Odds, Diminished China Trade Deal Tensions, Short-Covering, Biotech/Tech Sector Strength

 Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 19.25 -6.4%

• Euro/Yen Carry Return Index 121.83 -.1%

• Emerging Markets Currency Volatility(VXY) 8.14 +.12%

• S&P 500 Implied Correlation 46.96 -5.0%

• ISE Sentiment Index 82.0 +34.0%
  

• Total Put/Call 1.32 +3.94%

• NYSE Arms .65 -59.6%

Credit Investor Angst:

• North American Investment Grade CDS Index 63.05 +.64%
  

• America Energy Sector High-Yield CDS Index 491.0 -4.44%

• European Financial Sector CDS Index 69.15 +2.99%

• Italian/German 10Y Yld Spread 141.75 -3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 78.73 +2.13%
  

• Emerging Market CDS Index 212.29 -.45%
  

• iBoxx Offshore RMB China Corporate High Yield Index 166.12 +.04%

• 2-Year Swap Spread 4.25 +.75 basis point

• TED Spread 38.75 +6.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -27.5 +1.75 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 65.50 +.51%
• 3-Month T-Bill Yield 1.70% -5.0 basis points

• Yield Curve .15 +4.0 basis points

• China Iron Ore Spot 88.30 USD/Metric Tonne -.32%

• Citi US Economic Surprise Index 24.50 -8.6 points

• Citi Eurozone Economic Surprise Index -77.20 -7.9 points

• Citi Emerging Markets Economic Surprise Index -8.80 +.2 point

• 10-Year TIPS Spread 1.48 -2.0 basis points
• 95.7% chance of Fed rate cut at Dec. 11th meeting, 99.5% chance of cut at Jan. 29th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +14 open in Japan 
• China A50 Futures: Indicating -54 open in China

• DAX Futures: Indicating +29 open in Germany

Portfolio:

• Higher: On gains in my biotech/tech/medical/industrial sector longs

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 75% Net Long

Bear Radar

Style Underperformer:

• Mid-Cap Value +.4%

Sector Underperformers:

• 1) Airlines -.7% 2) I-Banks -.5% 3) Gaming -.4%

Stocks Falling on Unusual Volume: 

• SCHW, MRCY, COWN, SNAP, TSLA, IAA, STZ and INOV

Stocks With Unusual Put Option Activity:

• 1) UNFI 2) GPRO 3) STZ 4) BKLN 5) PEP

Stocks With Most Negative News Mentions:

• 1) DAL 2) AMTD 3) CARO 4) ANET 5) COF

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Growth +.8%

Sector Outperformers:

• 1) Video Gaming +1.8% 2) Software +1.4% 3) Biotech +1.3%

Stocks Rising on Unusual Volume:

• QTRX, TAL, IMMU, OKTA, CRWD, EPRT, LW, HRTX, ATVI, PEP, AYI, ROKU, SMAR, WPX, APO, WING, EW and ZYXI

Stocks With Unusual Call Option Activity:

• 1) STZ 2) ADP 3) APC 4) EMB 5) AMTD

Stocks With Most Positive News Mentions:

• 1) PEP 2) MEET 3) COST 4) CIEN 5) LEN

Charts:

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