Morning Market Internals

NYSE Composite Index:

• Volume Running +2.3% Above 100-Day Average
• 11 Sectors Rising, 0 Sectors Declining
• 76.6% of Issues Advancing, 29.0% Declining
• 129 New 52-Week Highs, 9 New Lows
• 58.0% of Issues Above 200-day Moving Average
• Average 14-Day RSI 47.2%
• Vix 13.6 -6.1%
• Total Put/Call .98 -10.9%
• TRIN/Arms .80 -17.5%

Friday Watch

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 64.75 -.25 basis point.

• China Sovereign CDS 39.25 -.25 basis point.

• Bloomberg Emerging Markets Currency Index  65.64 +.03%.
• FTSE 100 futures +.20%.

• S&P 500 futures +.14%.

• NASDAQ 100 futures +.16%.

Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:

• (BIG)/-.20
• (GCO)/1.08

After the Close:

• None of note

Economic Releases 
8:30 am EST

• Two-Month Payroll Net revisions for Nov. 
• The Change in Non-Farm Payrolls for Nov. is estimated to rise to 184K versus 128K in Oct.
• The Unemployment Rate for Nov. is estimated at 3.6% versus 3.6% in Oct.
• Average Hourly Earnings MoM for Nov. is estimated to rise +.3% versus a +.2% gain in Oct.
  

10:00 am EST

• Wholesale Trade Sales MoM for Oct.
• Univ. of Mich. Consumer Confidence for Dec. is estimated to rise to 97.0 versus 96.8 in Nov.
  

3:00 pm EST

• Consumer Credit for Oct. is estimated to rise to $16.0B versus $9.513B in Sept.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Canadian unemployment rate, (WWD) investor conference and the (SON) investor conference could also impact trading today.

BOTTOM LINE: Asian indices are higher, boosted by industrial and technology shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 100% net long heading into the day.

Stocks Reversing Slightly Higher into Afternoon on China Trade Deal Optimism, Less European/Emerging Markets/US High-Yield Debt Angst, Technical Buying, Tech/Homebuilding Sector Strength

 Broad Equity Market Tone:

• Advance/Decline Line: Slightly Higher
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 14.7 -.54%

• Euro/Yen Carry Return Index 125.28 +.09%

• Emerging Markets Currency Volatility(VXY) 6.89 -.43%

• S&P 500 Implied Correlation 43.9 -4.4%

• ISE Sentiment Index 78.0 +1
  

• Total Put/Call .96 -4.0%

• NYSE Arms .92 +15.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 50.39 -.73%
  

• America Energy Sector High-Yield CDS Index 626.0 +.14%

• European Financial Sector CDS Index 56.53 +.93%

• Italian/German 10Y Yld Spread 166.5 +6.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 64.9 -.31%
  

• Emerging Market CDS Index 205.03 +.11%
  

• iBoxx Offshore RMB China Corporate High Yield Index 168.36 -.03%

• 2-Year Swap Spread 1.5 unch.

• TED Spread 35.0 +.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -11.5 +.75 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 65.62 +.24%
• 3-Month T-Bill Yield 1.53% unch.

• Yield Curve .21 +1.0 basis point

• China Iron Ore Spot 86.26 USD/Metric Tonne -.33%

• Citi US Economic Surprise Index -2.3 +1.9 basis points

• Citi Eurozone Economic Surprise Index -.8 -1.7 points

• Citi Emerging Markets Economic Surprise Index -22.9 -.1 basis point

• 10-Year TIPS Spread 1.68 -1.0 basis point
• 12.3% chance of Fed rate cut at Jan. 29th meeting, 26.6% chance of cut at March 18th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +15 open in Japan 
• China A50 Futures: Indicating +17 open in China

• DAX Futures: Indicating +23 open in Germany

Portfolio:

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

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

• Market Exposure: Moved to 100% Net Long

Bear Radar

Style Underperformer:

• Small-Cap Growth -.1%

Sector Underperformers:

• 1) Biotech -1.1% 2) Education -.9% 3) Energy -.4%

Stocks Falling on Unusual Volume: 

• BIG, FFIV, ALXN, ALLK, EAF, KOD, OMER, APLS, ESTC and SAGE

Stocks With Unusual Put Option Activity:

• 1) FLEX 2) EAF 3) ETSY 4) DG 5) SAGE

Stocks With Most Negative News Mentions:

• 1) ALXN 2) FFIV 3) CC 4) ETSY 5) PCG

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Value +.2%

Sector Outperformers:

• 1) Gold & Silver +1.6% 2) Homebuilders +1.1% 3) Shipping +1.0%

Stocks Rising on Unusual Volume:

• ACAD, TLYS, PDCO, RH, CCXI, VRNT, CHWY, DTIL, PRVB, GTT, GSX, RYTM, CDNA, MEI, RTLR, WCC, GBT, GIII, WORK, AXE, PLNT, REZI, HQY and AXNX

Stocks With Unusual Call Option Activity:

• 1) PTI 2) XME 3) ACAD 4) MDLZ 5) SIG

Stocks With Most Positive News Mentions:

• 1) PDCO 2) HOV 3) DLTH 4) AZZ 5) ACAD

Charts:

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

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running -7.8% Below 100-Day Average
• 6 Sectors Rising, 5 Sectors Declining
• 49.5% of Issues Advancing, 47.5% Declining
• 53 New 52-Week Highs, 16 New Lows
• 57.2% of Issues Above 200-day Moving Average
• Average 14-Day RSI 46.8%
• Vix 14.7 -.3%
• Total Put/Call .93 -7.0%
• TRIN/Arms .89 +11.3%